Bitcoin at the crossroads: currency of the future or speculative bubble?

The Bitcoin is at a crossroads. According to Citi , a US bank, the next crypto market movements could sanction the definitive affirmation of BTC as a means of mainstream payment, or – on the contrary – push the asset towards a other speculative implosion , in the wake of the bubble that plunged virtual currencies three years ago.

Hence “ a point of no return “, according to analysts, which follows two months of high volatility after the frenzied race of 2020, with the BTC able to overtake 1 billion market cap , before retracing to 898 million.

Bitcoin, definitive statement or new bubble?

Bitcoin, the future is now, but the headaches are the same as always: on the one hand a dense rain of endorsements , from large international banks to US corporations, from digital payments giants to hedge funds, all – to varying degrees – on the BTC bandwagon after a fabulous rally.

On the other hand, the risk of regulations , suggested several times by the US Treasury Secretary, Janet Yellen, and by the President of the European Commission, Ursula von der Leyen, but also that volatility [19459006 ] which could compromise the efficiency of BTC as a means of mainstream payment and the growing doubts about eco-sustainability of mining activities , in a world increasingly governed by ESG criteria .

In short, the BTC continues to be pulled from all sides, and so the future remains cloudy. According to Citi, the rite of passage that should lead Bitcoin into the Olympus of big international finance is still threatened by the (many) bearish factors that have accumulated on the asset’s shoulders in recent months, although the odds that crypto establishes itself as “ preferred currency of international trade ” remain high.

Sooner or later, however, the BTC will have to definitively lean on one side, and the alternative to consecration – according to British analysts – is the definitive speculative implosion of the crypto , a scenario that has been relaunched to more resumed by international observers despite the unstoppable pandemic rally.

Bitcoin still below $ 50,000

This tension, in fact, is clearly visible in the movements of the crypto: after a January of high volatility, the BTC last month managed to cross the threshold of $ 50,000 , even going beyond 58,000 in an intraday. Then, despite the rescue of Square – the digital payment giant who invested another 170 million dollars in the asset – the currency failed to consolidate its position and lost share, hitting a low of $ 43,194 last weekend.

To increase the dose, JP Morgan also thought of , calling the BTC rally a “ side show ” compared to Fintech and banning the asset as a refuge for US equity investors, but crypto bulls still have good reasons to gloat: pending future developments, the current price of $ 48,428 certifies a year-over-year percentage change of 428% , and record takings.