It’s ‘still early’ – Wells Fargo releases huge Bitcoin and Ethereum price predictions as extreme volatility hits BNB, Solana, Cardano and XRP
Bitcoin and cryptocurrencies experienced a huge boom in 2021, with the combined crypto market growing from under $1 trillion to around $3 trillion, with some predicting the market could still grow much more.
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The price of bitcoin soared to nearly $70,000 per bitcoin late last year before falling back to just over $30,000. Ethereum and other major cryptocurrencies, including Binance’s BNB, Solana, Cardano, and XRP, saw similar volatility. Crypto prices have rebounded over the past week but remain highly volatile.
Now banking giant Wells Fargo has predicted that global crypto adoption could “soon reach a hyper-inflection point” – adding “it is still early in the evolution of cryptocurrency investing” .
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“For today’s investor trying to figure out whether we are ahead or behind in investing in cryptocurrencies, it seems reasonable to consider investing in technology from the mid to late 1990s. “Wrote Wells Fargo’s global investment strategy team in a report this week. “At that time, the internet reached a phase of hyper-adoption and never looked back. Cryptocurrencies seem to be at a similar stage today.”
Analysts pointed to research by bitcoin and crypto exchange Crypto.com which found that the number of global cryptocurrency users reached 221 million in June 2021, just under 3% of the population. world, noting that “it only took four months to double the global cryptocurrency population from 100 million to 200 million.”
“If this trend continues, cryptocurrencies could soon exit the early adoption stage and enter a hyper-adoption inflection point, similar to other technologies. adoption start to increase and don’t look back […] Hard numbers aside, there is no doubt that global cryptocurrency adoption is on the rise and may soon reach a hyper-inflection point.”
However, the team – part of the Wells Fargo Investment Institute, the research arm of Wells Fargo Wealth and Investment Management – warned that “cryptocurrency investment options are still maturing” and they “advise patience”, adding that they “hope that greater regulatory clarity in 2022 brings higher quality investment options.”
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Regulation of bitcoin and crypto has been thrust onto the agenda of governments around the world after the huge bull run of 2021, with the growth of blockchain-based stablecoins setting alarm bells ringing for regulators.
Last month, it was reported that the Biden administration in the United States was preparing an executive order that will outline a comprehensive government strategy on bitcoin and cryptocurrencies and direct federal agencies to determine their risks and opportunities.
Meanwhile, a sudden selloff that hit Bitcoin, Ethereum and others late last year was sparked by expectations that the US Federal Reserve will hike rates several times this year, driving up the cost of trading. borrowing and starting to scale back its stimulus in the age of the pandemic.
The crypto price crash – which has hit all major cryptocurrencies including bitcoin, ethereum, Binance’s BNB, solana, cardano and XRP – has sparked fears that another winter crypto does not take hold, similar to the bear market of 2018 which saw many of the biggest coins lose 90% of their value.
“Even though the current crypto trend looks bearish, we have to take into account that the structure of crypto investments is quite different now compared to previous peaks in late 2017,” said Andras Ivan, an analyst at the international site of broker comparison BrokerChooser, says in the comments by email.
“The market capitalization is significantly higher now and institutional investors have joined in over the past 1-2 years. crypto winter of 2018-2019.”