Bitcoin’s adoption is at an early stage, according to Wells Fargo
Crypto is on a similar trajectory to the 1990s. It saw mass adoption skyrocket.
Marcus Sotiriou, an analyst with London-based digital asset trading platform GlobalBlock, says “it’s only a matter of time” before major banks and companies still on the sidelines join the crypto bandwagon.
This week, Wells Fargo, a multinational financial services company, is featured published a report that was highly bullish on cryptocurrencies, suggesting that it’s only a matter of time before we see an explosion in crypto adoption.
The bank giant examined the adoption of the internet in 1990s and current trends for Bitcoin and other digital assets and concluded that crypto is on the path to exponential growth.
According to the company, crypto’s “adoption percentages” today mirror those recorded during the nascent years of the internet. Wells Fargo believes that people will quickly embrace the technology as digital asset use cases are getting more recognition around the world.
However, crypto represents just 3%, or 221,000,000 people worldwide, so the future of crypto could be bright, if the trend holds, and mirrors that of the internet.
Chart showing how internet usage compares to growth in crypto users. Source: Wells Fargo
While Wells Fargo expects crypto to “hit a hyper-infliction point” not far in the future, its call also includes a warning that many projects will likely also fail.
Sotiriou: It’s only a matter time
Some of the world’s largest banks still hold a negative outlook for Bitcoin and other cryptocurrencies.
Marcus Sotiriou, an analyst for UK-based GlobalBlock, is a trader in digital assets. believes this won’t be the case for long.
He said that Bank of America, which is led by Jamie Dimon, will soon adopt a different position on crypto than JPMorgan.
The analyst notes that institutional investors are already becoming more interested in cryptocurrency, and this is a good thing. KPMG Canada was the last to announce that it had added Bitcoins and Ethereum to its Treasury this week.
GlobalBlock’s Sotiriou observed that Bitcoin could be the main beneficiary of massive adoption.
Bitcoin’s retreat from highs of $45,500 this week means bulls are facing prospects of further weakness. The outlook, according to Sotiriou, is likely to be exacerbated by the broader sentiment across markets following yesterday’s hotter than expected US inflation data.
He also notes that the rejection after BTC/USD jumped nearly 40% since its January lows suggest bulls need will to bounce above this week’s intraday highs and hold off sellers to confirm a bullish continuation.
At the time of writing, BTCUSD was trending at $43,643