A famous investment bank thinks that the time of the biggest cryptocurrency, Bitcoin (BTC), will come again. In a report it shared, the bank claims that BTC will regain its place in the financial market. Here are the details…
Berenberg: Bitcoin’s status will rise in the crypto world
The 400-year-old German investment bank, Berenberg, predicted that Bitcoin, which fell after the bear market, would regain its place in the world of cryptocurrencies and the general financial sector. The bank acknowledged that Bitcoin has lost its status to other crypto assets and projects in recent years. But he highlighted a research paper outlining several factors that will elevate Bitcoin’s status in the coming months. The report points to the classification of nearly every token as a security in the United States. For this reason, it is noted that tokens are at risk of being subject to sanctions. In addition, the increasingly stringent regulatory environment is identified as an important factor. Bitcoin’s unique design, characterized by decentralization and transparency, makes it an exception to this regulatory crackdown.
The report comes at a time when Bitcoin has experienced a price rally in recent weeks, partly inspired by the US banking crisis. Berenberg sees this rally as a sign that more investors are considering Bitcoin as a “sensible alternative” between cryptoassets and the general financial sector. The credit institution also pointed out that other global economies are trying to abandon the dollar as a reserve currency. He suggested that these could increase Bitcoin’s value proposition as an alternative to traditional currencies.
Halving, an important catalyst
The report states that the next Bitcoin halving, scheduled for May 2024, is another possible catalyst for the Bitcoin rally. “If history is any guide, Bitcoin may rally before and after the halving,” the report said. cryptocoin.com As we have also reported, halving is an event that takes place every four years. It is a programmatic reduction in rewards for miners who verify transactions on the Bitcoin network. Finally, the bank highlighted the growing importance of the Bitcoin Blockchain and how the widespread adoption of the Lightning Network demonstrates this.
Lightning Network offers low transaction fees for the Bitcoin Blockchain. It’s also a second-tier (L2) solution that provides near-instant action. Bitcoin has had a turbulent path in the past as its value fluctuated wildly after its launch in 2009. However; The large investments in crypto by companies such as Tesla, Square and MicroStrategy have positively impacted the market. With the investment of companies, cryptos are slowly gaining acceptance in the mainstream financial world. More investors are seeing Bitcoin as a viable alternative to traditional currencies and other crypto assets. That is why, according to many, the outlook for the cryptocurrency is promising.
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