Amundi, a primary European asset manager, believes that the ongoing cryptocurrency winter and latest market collapses do now not necessarily indicate the inevitable failure of digital property like bitcoin (BTC).
Moreover, the paper’s authors suggested that nominal hobby fees may additionally stabilize or minimize if inflation stays high however stops rising. In such a scenario, Bitcoin may want to enter a bull market, according to Amundi investment executives.
Although bitcoin (BTC) has no longer been in a position to guard investors from rising inflation in 2021 and 2022, its restrained provide may additionally proceed to attract attention if inflation remains above central banks’ targets.
Investment executives at Amundi, based in Paris, suggest that bitcoin’s attainable as a hedge in opposition to inflation should still be a issue in its favor.
Vincent and Tristan have pointed out that Ethereum’s transition to a proof-of-stake blockchain is a profitable example of the industry’s efforts to minimize energy consumption. They have also emphasised that the essential values of crypto, such as decentralization and immutability of transactions, remain unaffected by way of the recent crisis.
Despite the downturn, major groups from a variety of industries continue to show activity in crypto. For instance, Blackrock’s acquisition of a stake in Circle in 2022 highlights the persevered attention that crypto is receiving from prominent players in the monetary sector.
The latest market turbulence will probably lead to more sensible expectations from the industry, keeping apart the authentic contenders from the rest. The Amundi executives have compared crypto to blue-chip tech stocks, which additionally went thru periods of volatility before thriving.
