April 25, 2024

Wall Street Analysts Believe in Bitcoin Price Rise

Wall Street Analysts Believe in Bitcoin Price Rise

Chris Wood, head of stock strategy at the American investment company Jefferies Group, recommendscustomers to buy the main cryptocurrency. He is the author of Jefferies weekly analytical article, “Greed and Fear”.

In a recent address to investors, Wood wrote that halving should increase upward pressure on the price if demand for bitcoin continues to grow, as it was in 2012 and 2015.

Despite the fact that the price of BTC suffered duringinvestors fleeing risky assets in March, dropping 57% from $ 9,184 to $ 3,915 for the week ending March 13. However, this does not mean that Bitcoin is just another high beta asset.

Investors must have both gold and bitcoin

These assets are not mutually exclusive, howeverattitude towards them varies due to the demographic profile of investors. Wood believes that bitcoin can provide the investment portfolio with the necessary diversification, since it has a truly decentralized nature. Supplemented by limited issuance at the expense of halving, it makes the cryptocurrency a hedge against manipulated central banks of fiat money.

Fundstrat Global Advisors co-founder Tom Leesupported this opinion. According to him, Bitcoin shows itself to be an extremely successful asset. Since the beginning of the year, the main cryptocurrency has surpassed the stock market by an impressive amount.

Bitcoin proves to be worthya risky asset and a hedge against disasters. Fundstrat Global Advisors is also positive about the impact of the upcoming halving on supply / demand.

Recall that less than 9 days remain before it. Halving occurs once every four years and this time will lead to a decrease in block rewards from 12.5 BTC to 6.25 BTC. It is expected that the issue of its influence on the price continues to cause increased interest of market participants.

Some analysts believe that the decline in the supply of new bitcoins is already reflected in the price of cryptocurrency. At the same time, Wall Street investment companies admit the possibility of further growth against this background.