Despite the bearish forecasts of market technicals, Bernstein analysts remain optimistic that Bitcoin and other cryptocurrencies could reach new heights, Barron’s reports.
The firm’s analysts have pointed out the industry's great track record of recovering from its lows and bouncing back with exponential returns after each winter it goes through.
Bernstein’s optimism is centered around the promise of long-term growth due to increasing adoption among internet users.
Tomiwabold OlajideUltimately, investors should focus on long-term consumer adoption if they plan to see significant returns over time.
The previous year brought a myriad of challenges for the cryptocurrency market. Bitcoin closed 2021 substantially lower, losing 65% of its value. This decrease in price starkly contrasts with a 60% gain recorded in 2021 and an almost four-fold increase observed in 2020. The bear market conditions are reminiscent of 2018 when the flagship cryptocurrency experienced a 74% decline.
The recent crash of the FTX token, as well as weak risk appetite due to the Federal Reserve's aggressive rate hikes all played their part in pushing Bitcoin prices downwards by the end of the year.
Dan Burgin
Vladislav Sopov