Crypto News
15 Feb 2022

Not Too Late to Buy Bitcoin: Wells Fargo

Savan

Banks are betting big on Bitcoin (BTC), the largest cryptocurrency by market capitalization. Most recently, analysts at the Wells Fargo Investment Institute (WFII), the advisory wing of global financial service provider Wells Fargo, have asserted that it isn’t too late to invest in BTC despite the rising prices.

In a report published by WFII’s Global Investment Strategy Team, the analysts noted that the crypto space is still in its nascent stage and appears to be nearing a hyper-adoption phase, just like the internet was from mid-to late-1990s.

The report also acknowledges that crypto assets have outperformed other major asset classes over the past decade, leading to the fear that it may be too late to invest in them.

“Bitcoin’s price, as an example, has compounded at [a] 216% annual rate since its first record transaction in 2010. By comparison, the total return of [the] S&P 500 Index over the same period has compounded annually at 16%,” the report noted. Check the current exchange rate of BTC to INR. 

Countering the “too late to invest” argument, the authors of the report write, “We understand the ‘too late to invest’ argument but do not subscribe to it. We believe that focusing too much on past performance, especially with cryptocurrencies, can be misleading to new investors.”

Bitcoin to Reach $1,50,000 in Long Run, Predicts JPMorgan

On a similar note, last week global investment bank JPMorgan increased its long-term price prediction for BTC to $1,50,000. The bank had earlier set a long-term target of $1,46,000 in November 2021.

Analysts at JPMorgan Chase noted that Bitcoin could match private investment in gold, estimated at $2.7 trillion, if the investment inflow into the crypto asset continues. Interestingly, analysts believe that the price of Bitcoin is currently overvalued by 12%, and it could gain value as the volatility drops.

In addition to JPMorgan’s price prediction, other reliable metrics indicate a surge in BTC’s price.

Historically, a drop in USD Tether (stablecoin) transactions indicates a Bitcoin price rally. After the mid-November high in 2021, the daily activity in the Tether network has dropped to a two-year low. Besides, large wallet investors holding 1,000 or more BTCs have continued accumulating through the recent price crashes, indicating a rising demand in the short term.

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Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

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Savan

Content Writer

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