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Cryptocurrency price analysis continues to be bearish. According to Coinmarketrate.com, BTC, the most ezpensive digital currency in the ecosystem, is trading in the range of 45-47 US dollars, and at the moment cannot overcome the “barrier” of 50,000 US dollars.
Analysts and cryptocurrency experts have repeatedly suggested that by the end of the year, Bitcoin will reach a new historical high of $ 100,000.
However, the picture is completely different from the assumptions: according to the Fear and Greed index, which reflects the temperament of the cryptocurrency market, investors are experiencing “extreme fear”, and the prospects for bitcoin are neither positive nor favorable.
Other cryptocurrencies, such as Ether, Binance Coin, Solana, Cardano, Shiba Inu and Polkadot, accompanied the fall and declined by as much as 16%.
In any case, the result of 2021, despite the current downward trend, is positive: Bitcoin in 2021 has made a profit of 57.93% in dollars to its investors by now.
According to a report in the academic journal Journal of Economic Dynamics and Control, the prices of digital currencies are associated with two factors: on the one hand, cryptocurrencies are influenced by recent US statements on risk-averting indicators (so-called forward-looking indicators)
On the other hand, every time the consumer confidence index is updated (an indicator reflecting the level of confidence of Americans in economic activity), fluctuations occur in the cryptocurrency market.
In a word, the price of cryptocurrencies is reflected in the world markets, and in the event of a recession, their price will also fall.
But, despite the fluctuations of the BTC, three cryptocurrencies arouse interest with their persistent growth:
According to the platform Coinmarketrate.com, Avalanche cryptocurrency ranks tenth among the most traded digital currencies in the entire ecosystem.
Over the past seven days, the company has brought investors a profit of 22%.
Luna, the Terra blockchain token, has returned 30% to its investors over the past seven days.
The XRP cryptocurrency grew by 3% amid the fall of Bitcoin. Moreover, its volume has increased by 128% in the last 24 hours, which means that more and more investors are buying and selling, pushing its price up.
But this is what concerns the crypto market. But what do the institutionals think?
The Wall Street Shark and its recommendations
Richard Brenstein believes that Bitcoin will fall by 90%, and recommends investing in the energy sector, which, in his opinion, will be the largest indicator in 2022.
“Cryptocurrencies are the biggest financial bubble in history”, says Wall Street’s most famous shark.
The popularity of cryptocurrencies is growing every day: young people, in particular, choose them as a means of investment, savings and an ideal place to store their money, as opposed to the options of the traditional financial system, which they distrust.
Against the background of the growth trend and fanatical attitude towards the cryptocurrency system, criticism is not surprising, and the debate about whether this financial form is sustainable in the long term has come to the fore among experts in the sector.
In this regard, Richard Brenstein, one of the most famous Wall Street investors, who is even a member of the Hall of Fame of Institutional Investors, has somewhat pessimistic forecasts for the world of cryptocurrency finance.
CEO and CIO Richard Bernstein Advisors, in a dialogue with CNBC, claimed that “cryptocurrencies are the biggest financial bubble in history,” and stressed that, according to his forecasts, “the BTC could fall by 90%.”
The expert also compared the situation with what happened to some tech stocks during the bubble of 2000, and said that history will repeat itself.: although cryptocurrencies now seem to be the key to success, all this will collapse, Bernstein believes.
This is not the first time that an investor is skeptical and resistant to investing in cryptocurrencies: in June last year, also in an interview with CNBC, he said that he believes the speed with which investors seek to obtain Bitcoin and other cryptocurrencies is “very dangerous.”
Brenstein claims that there are some assets that will always be bubbles, for example, “breakthrough technologies and cryptocurrencies”. However, as for investments, the expert noted that “there is literally everything that can be offered in this world”. If you are looking at 2022 and 2023, you will want to be on the side where you can offer”.
In this sense, he said that “today’s asset bubbles can very significantly harm investors,” and again referred to what happened to technology stocks in 2000.
According to the CEO, those who are now betting on “bubble assets”, as he calls them, do not pay attention to expert assessments, and do not understand that it will take decades to recoup their investments.
Currently, he advises investing in energy, because, in his opinion, in 2021 it will be one of the most efficient sectors. The expert has even repeatedly stated that for him oil is the most overlooked bull market.
Does he remind you of anyone? Well, those who don’t believe in Bitcoin.
But VISA believes in Bitcoin.
Bitcoin and VISA: declaration of love
The fact that VISA has started to have a certain passion for the world of Bitcoin and cryptocurrencies in general should no longer be a secret to anyone, although we have never heard such clear words from a key employee of the group.
Qui Sheffield, the head of VISA’s crypto division, sang the praises of Bitcoin, and a fairly small group of other cryptocurrencies, in a series of speeches that will also help us outline a possible trajectory for the development of the digital payments group. Obviously, with regard to what they will do in the world of cryptocurrencies. And they are not afraid of the fall in the BTC price.
VISA becomes the first promoter of the Bitcoin universe. This (albeit in a severely suffering market) is also very good news about Bitcoin. VISA will also offer cryptocurrency support in the future. And this is the first of the news that came from Sheffield, who currently heads the VISA department engaged in the implementation of crypto services:
“VISA will offer its crypto consulting services to clients all over the world, wherever there is interest, and at the moment we offer access to cryptocurrencies in those markets that allow us in terms of the legality of such transactions”.
This was the first of the statements that went around the world. It repeats what has already been said regarding the services also offered to banks for VISA, which strives to become and remain the first player at the complex intersection of the crypto world and classical finance. But this is not the end of Sheffield’s declarations of love, especially for BTC:
“Cryptocurrencies are at the intersection of culture and commerce, and they do it in a really interesting way. Bitcoin is a technological phenomenon, and at VISA our work in the world of cryptocurrencies is becoming increasingly important. Over the past few years, we have also witnessed a significant growth in the vision of our customers, who have finally realized that this world will have a big impact on their business.”
If someone still needs answers to questions about the future of cryptocurrencies, they can find them in the words and actions of Qui Sheffield, who remains a balanced human resources officer as part of VISA’s reorganization, given the growing importance of this sector.
This is great news that will affect not only Bitcoin, but also the decentralized finance sector, as well as the NFT sector. They are also of increasing interest to an increasing number of companies from sectors that are not directly financial. Those who thought that after a sluggish and uninteresting phase of the market, there would be an imminent departure of the financial sector from Bitcoin were deeply mistaken, and they will have to reconsider their point of view once again.