Bitcoin Has The Potential To Be Primary Monetary Good – Fidelity

• By the end of this year Bitcoin will exceed $60,000, with 41% expecting it to trade at such value by the ending of the year, 9% expecting it to trade over $80,000, and 5% expecting it to trade at $100,000
• The value of the flagship cryptocurrency fell from a $67,000 all-time peak to a $34,000 bottom before recovering, analysts at JPMorgan Chase reduced its long-term bitcoin value target from $150,000 to $38,000

• According to Fidelity, Bitcoin’s lack of backing and status as the first cryptocurrency means it has the potential to dominate the virtual asset ecosystem

No alternative digital asset is expected to overtake bitcoin as a monetary good according to the paper because bitcoin is the safest decentralized form of asset. Any enhancements that other crypto assets make to it must have trade-offs.

BTC has been compared to a type of digital gold by cryptocurrency investors, who have dubbed it gold 2.0 at times. Fidelity appears to concur with the assessment: According to Fidelity, Bitcoin’s lack of backing and status as the first cryptocurrency means it has the potential to dominate the virtual asset ecosystem thanks to the very powerful impacts of networks. BTC, according to the business, is a way for traditional investors to get into the area.

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As CryptoGlobe previously reported, BTC sentiment has been fairly unfavorable in recent weeks. After the value of the flagship cryptocurrency fell from a $67,000 all-time peak to a $34,000 bottom before recovering, analysts at JPMorgan Chase reduced its long-term bitcoin value target from $150,000 to $38,000.

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Bitcoin Will Exceed $60,000 By The End Of The Year

The majority of JPMorgan’s clients, on the other hand, believe by the end of this year Bitcoin will exceed $60,000, with 41% expecting it to trade at such value by the end of the year, 9% expecting it to trade over $80,000, and 5% expecting it to trade at $100,000. During January, the value of major cryptocurrencies plummeted, with BTC falling over 20% and ETH falling over 30% from all-time highs reached during November of the previous year. Bitcoin’s share of overall assets kept within cryptocurrency investment products increased to 69.5 percent during the drop.

According to CryptoCompare’s newest Digital Asset Management Review, macro sentiment around risk-assets had also been the top narrative in the markets, as investors expect important tapering of quantitative easing from central banks following the release of a record 7% CPI inflation figure from the US in December 2021.

According to the research, bitcoin investment products’ assets underneath management plummeted 25.1 percent from $58.6 billion to $43.9 billion, whereas average everyday trading volumes fell 14.5 percent to $481 million. It goes on to say that assets underneath management for Bitcoin-based products fell 23.3 percent to $29.9 billion, while Ethereum-based goods, as well as products supported by other assets, fell by 29.2 percent and 29.9 percent, respectively.

As a result, BTC items increased their market share from 67.8% to 69.5 percent in January.

The third week of December saw the first outflows of digital asset goods since August, based on its Digital Asset Management report, with the trend continuing into January. Bitcoin goods have had the most withdrawals, with an average weekly outflow of $49.3 million. Certain products, in particular, saw inflows. Inflows into Solana-based goods averaged $2.4 million per week, according to the report. Likewise, most products experienced a drop in trading volume, while physically-backed BTC items saw an increase.

Ethereum’s Volume Share From 95% to 80%

According to CryptoGlobe, JPMorgan researchers led by Nikolaos Panigirtzoglou believe that whenever it comes to non-fungible tokens, Ethereum, the second-largest cryptocurrency by market capitalization, is losing market share against rivals like Solana (NFTs).

The analysts noted in a letter to clients that Ethereum’s volume share of non-fungible token trading decreased from 95% at the start of 2021 to 80% as a result of the cryptocurrency’s network’s high transaction costs. In the case of Bitcoin, JPMorgan analysts recently revised their long-term price prediction of $150,000 to $38,000 after the flagship cryptocurrency fell from a $67,000 all-time peak to a $34,000 bottom before recovering.