The world’s largest cryptocurrency, Bitcoin (BTC), is at a crucial moment in history, according to an analysis by the American investment bank Citigroup.
Bitcoin is currently at a “tipping point” to either become the currency of choice for international trade or to face a “speculative implosion,” according to analysts at Citi.
According to a Reuters report on Monday, Citi analysts are confident that Bitcoin is close to mainstream. According to the report, Bitcoin’s enormous potential has been fueled by the recent major Bitcoin moves by companies like Tesla and Mastercard.
Citi analysts wrote, “There are a myriad of risks and obstacles standing in the way of Bitcoin’s progress. However, weighing these potential hurdles against the odds leads to the conclusion that Bitcoin is at a tipping point. “
Citi analysts also indicated that the widespread adoption of Bitcoin could be helped by the development of digital currencies such as central bank digital currencies and fiat-linked stablecoins.
The news comes amid a major correction in the cryptocurrency market: Bitcoin fell below $ 44,000 yesterday after hitting a new all-time high of over $ 58,000 in early February. At the time of writing, Bitcoin is trading at $ 47,285, according to Cointelegraph’s Bitcoin Price Index, an increase of around 4.5% over the past 24 hours.
According to some experts, global regulation could be one of the biggest hurdles for institutional investors to adopt Bitcoin. Rebecca Patterson, director of investment research at Bridgewater, said on Feb. 24 that regulatory security around Bitcoin would solve some of cryptocurrency’s biggest problems associated with high volatility and low liquidity.