According to analysts of one of the largest banks in the world, Wells Fargo (WFC.US), the cryptocurrency market is still 'young' and is in a phase before mass adoption. Wells Fargo & Company is an international financial services firm with headquarters in San Francisco and New York.
The bank's report was published on February 7 by the Wells Fargo Investment Institute department that deals with financial market research. Wells Fargo is another institutional entity that has recently spoken positively about blockchain technology and the digital asset market. In the report, analysts compared cryptocurrencies to an investment opportunity similar to the early stage of internet development.
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Source: Wells Fargo Investment Institute
According to a study by Crypto.com in July 2021, the number of global cryptocurrency users more than doubled from 100 million in January 2021 to 221 million in June 2021. Currently, the number of users has exceeded 300 million, which is over 4% of the Earth's population. Analysts also pointed out that the development of cryptocurrencies resembles the phase of the Internet at the end of the 90s, when investors and technology users were wondering about the potential use of the Internet and how it could change the reality.
Wells Fargo also emphasized that the removal of regulatory blocks will be necessary to increase the adaptation of this class of assets. According to the bank, regulators may soon approve ETFs that buy cryptocurrencies directly from the market for investors - perhaps in 2022. This could significantly increase the valuation of cryptocurrencies by encouraging investors interested in the traditional exchange to invest in the cryptocurrency market, without the need to create special accounts on cryptocurrency exchanges. Such exchanges may potentially become the target of hackers' attacks, which has happened many times in the past. This topic has been stimulating the imagination of investors for a long time, but so far all proposals to create ETF funds based on the Bitcoin or Ethereum spot price have been rejected by the SEC.
Meanwhile, Bitcoin is once again trying to break above major resistance at $45000. Should break higher occur, another key target for buyers can be found around $50,000, where currently the 100 SMA is about to break below the 200 SMA. Source: xStation5
