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The American multinational financial giant says cryptocurrencies could become investment-worthy one day, but today the volatility is still the main drawback that keeps big players from entering the market.
"Fads [cryptocurrencies] do not typically last 12 years. There are good reasons for this — reasons that every investor should hear. As we roll into 2021, we will be discussing the digital asset space more — its upside and downside," the analysts wrote.
The cryptocurrency market still has a future as its size is worth approximately $560 billion, which is about one-fourth the size of the S&P 500 technology company with the largest market capitalization, Wells Fargo emphasizes. As of press time, BTC is trading at $18,878. The largest cryptocurrency by market capitalization is up 170% in 2020 which is on top of the 90% gain it had in 2019, the analysts highlight.
At the same time, bitcoin's fluctuations can reach $10,000-50,000, and capitalization can grow up to $1 trillion in 2021-2022, Bloomberg analysts project.
The experts believe that the cryptocurrency's price will surge thanks to the unprecedented pace of quantitative easing and the growth of the ratio of debt to GDP, as well as the reduced rate of coin emission after the halving.
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