Sorry, bitcoin investors, there's no light at the end of the tunnel, according to London based Capital Economics.
In the coming months we can expect much weaker bitcoin quotes compared to other asset classes, analysts from Capital Economics believe.
Analysts believe that one should expect the end of a stronger correlation between the bitcoin and S & P500 quotations, visible since December last year, when the most popular cryptocurrency reached the highest value.
- The correlation of bitcoin with share prices has strengthened recently, but we think it is only a temporary phenomenon. We still think bitcoin is essentially worthless, which means it will probably be traded much worse than other assets in the coming months, the Capital Economics report said.
Analysts believe that the correlation between bitcoin and the stock market was largely accidental, because it was caused by a series of discounts related to specific events, such as banned custodians from trading by some banks, increased interest from regulators, or the ban on virtual money advertising by the largest internet platforms.
The main factor behind the drop in the price of bitcoin will probably be that it becomes more and more clear that it is not a credible long-term alternative to conventional currencies - says Capital Economics.
Personally I dont think BTC will drop below 6k any more. People do not want to sell below that price already.
"Sorry, bitcoin investors, there's no light at the end of the tunnel, according to London based Capital Economics."
What do you think mate?
I don't know. I'm not really a Bitcoin believer myself. I do believe that we will see more and more altcoins decoupling from Bitcoin process and I believe the largest value lays with cryptos which may run popular applications in the future, social media included.
Hi mate
I think we're on the same page here.
Thx for your comment. Appreciate :)
ps.
I made my first contest ever. Would you mind checking it out and sharing your feedback? And perhaps also commenting as Im interested what is your view on discussed issue:
https://steemit.com/blockchain/@crypto.piotr/mini-contest-how-ai-supported-by-growing-blockchain-technology-can-change-the-world
I would really appreciate if you could share some of your experience with me :)
Cheers, Piotr
That's a bit of a self serving prediction by Capitol Economics, don't you think? Especially when we know new money is going to start flooding into the crypto market later this year. This is equivalent to traditional businesses slamming internet based businesses as a "fade" during the ".com" boom in the late 1990's.
Crypto is obviously going to change the world. While I can't tell you which currencies will succeed and which will fail, I'm fairly certain the overall crypto market is going to reach all time highs in the next few years.
Well, yeah. I read the news whenever I'm in mood to do so. Don't act on them much as these are just noise.
The financial world is confused, but shouldn't really be any more. Biggest banks in Europe start introducing blockchain for across countries money transfers and such usage will only grow.
I no longer consider crypto as cryptocurrency replacing financial systems. I see much more value in the way future apps and websites will engage it's users - Cryptokitties and Steemit be a pioneer in this field.