• Bitcoin has risen exponentially but some analysts are unconvinced it’s moving in the right direction.
• The currency dropped to around $16K from its November 2021 all-time high of $68,000 per unit.
• Analysts attribute some of the recent price increase to banking problems occurring in regions like the U.S. and Europe, but believe that more widespread adoption is necessary for sustainable growth.
Bitcoin Price Soaring Despite Some Doubts
Bitcoin has seen an unprecedented rise following the bank crisis earlier this year, with a current trading value of around $28,000 per unit. This occurred after a dramatic drop of over 70 percent from its all-time high of $68,000 back in November 2021 – making 2022 one of the worst years on record for cryptocurrency.
Analysts Unconvinced Of Sustained Growth
Despite clear evidence that bitcoin is on an exponential rise, many analysts are still unconvinced that it is heading in the right direction or doing as well as so many peers believe. Ed Moya – crypto analyst at OANDA – believes there isn’t much new money coming into the space and that this could be attributed to „a liquidity issue“. Conor Ryder – Kaiko research analyst – also weighed in on this sentiment saying “It doesn’t mean that because there’s a big price move one way that this is a whole new wave of institutional money or anything like that”
What Caused The Rise?
The recent surge in Bitcoin’s price appears to be due to banking problems occurring worldwide – such as Silvergate, Silicon Valley Bank and Signature Bank crashing over past couple months. With centralized finance up in the air, many have turned towards digital assets such as Bitcoin to keep their portfolios intact. Initially introduced back in 2008 by Satoshi Nakamoto, Bitcoin was designed as an answer to financial crisis and Great Recession- however it took more than a decade for mainstream adoption to take off.
Crypto Critics Weigh In
Crypto critic Molly White believes „there needs to be more use cases for people who don’t know about blockchain technology“ if we want sustained growth within the industry beyond just speculative investments and „trading opportunities“. Despite criticism however, investors remain bullish on cryptocurrencies long term potential thanks largely to its decentralized nature which offers protections against government interventions and central bank manipulation which traditional fiat currencies can’t provide.
Conclusion
Cryptocurrencies have come a long way since their inception but still have further room for growth before they reach full maturity. While some analysts remain skeptical about its potential going forward, others remain confident in its ability withstand macroeconomic shockwaves with decentralized features providing greater stability compared to traditional currencies under extreme market conditions
