Bernstein calls the perfect time to buy bitcoin

According to analysts, the growth of the user base of cryptocurrencies will grow 10–100 times in the long term

04.01.2023 - 08:55

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2 min

The material is not an investment recommendation and is published for information purposes only.

What’s new? Analysts at Bernstein believe that now is the perfect time to buy bitcoin, as crypto assets are at historically low price levels. As statistics show, after each of these declines, the market recovered and showed a high return on investment. The Barrons website wrote about it quoting Bernstein’s report.

Material on the Barrons website

What else is known? Cryptocurrencies suffered a painful collapse last year due to the collapse of the Terra ecosystem, hedge fund Three Arrows Capital, and the FTX crypto exchange, as well as a rise in US interest rates by the Federal Reserve System (Fed). Participants in the traditional finance market believe bitcoin is more likely to fall by half than to rise in 2023.

However, analysts at Bernstein hold the opposite view. Bitcoin has experienced two crypto winters in its history prior to 2022. And after each fall, the asset has always come back with exponential returns. According to analysts, the industry has a lot of experience dealing with dips and taking a hit when the market goes down. And given the fact that less than 5% of all Internet users use cryptocurrencies, that gives considerable room for adoption through various applications.

Investors should focus on the long-term adoption of cryptocurrencies by consumers. As blockchain scales and applications evolve, Bernstein expects the user base to grow 10–100 times.

Earlier, Bernstein identified two main problems with the Binance crypto exchange. The first is related to the presence of an offshore company in the Cayman Islands. This means that the exchange needs to take progressive steps to change its business model. The second problem is that after the collapse of FTX, the exchange has become a monopolist in global cryptocurrency trading and may face competition from decentralized exchanges.

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