According to an analysis by US investment bank Citigroup, the world’s largest Bitcoin (BTC) cryptocurrency is at a defining moment in history.
According to Citi analysts, Bitcoin is now at a “turning point” to either becoming the currency of choice for international trading or facing a “speculative explosion.”
Citi analysts are confident Bitcoin will soon become mainstream, according to a Reuters report released on Monday. Bitcoin’s huge potential has been driven by recent big moves by Bitcoin companies like Tesla and Mastercard, according to the report.
Citi analysts write: “There are a number of risks and obstacles in the way of Bitcoin’s progress. But comparing these potential hurdles to opportunities leads to the conclusion that Bitcoin is at a turning point.
Citi analysts have also suggested that the development of digital currencies such as central bank digital currencies and fixed coins could aid Bitcoin’s mass adoption.
The news comes amid a major correction in the cryptocurrency market, as the bitcoin price fell below $ 44,000 yesterday after hitting an all-new high of over $ 58,000 in early February. Bitcoin is trading at $ 47,285 at press time, up about 4.5% in the past 24 hours, according to the Cointelegraph Bitcoin Price Index.
According to some experts, global regulation may be one of the biggest obstacles to Bitcoin adoption by institutional investors. Bridgewater’s investment research director, Rebecca Patterson, said on February 24 that the regulatory security of Bitcoin will address some of the biggest cryptocurrency challenges associated with high volatility and low liquidity.