The world’s largest cryptocurrency, Bitcoin (BTC), is at a defining moment in history, according to analysis from United States investment bank Citigroup.
Bitcoin is now at a “tipping point” to either become the preferred currency for international trade or face a “speculative implosion,” Citi analysts reportedly said.
According to a Reuters report Monday, Citi analysts are confident that Bitcoin is on the cusp of going mainstream. According to the report, Bitcoin’s tremendous potential has been fueled by recent big Bitcoin moves by companies like Tesla and Mastercard.
Citi analysts wrote, “There are a host of risks and obstacles that stand in the way of Bitcoin progress. But weighing these potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point.”
Citi analysts also hinted that the mainstream adoption of Bitcoin could be helped along by digital currency developments like central bank digital currencies and fiat-pegged stablecoins.
The news comes amid a major correction on the cryptocurrency market, with Bitcoin dropping below $44,000 yesterday after hitting a new all-time high of above $58,000 earlier in February. At publishing time, Bitcoin is trading at $47,285, up around 4.5% over the past 24 hours, according to data from Cointelegraph’s Bitcoin price index.
According to some experts, global regulation could be one of the biggest hurdles for Bitcoin’s adoption by institutional investors. Bridgewater's director of investment research, Rebecca Patterson, said last Wednesday that regulatory certainty around Bitcoin would solve some of the cryptocurrency’s biggest problems associated with high volatility and low liquidity.