Governments and regulators will "stop the music" for bitcoin
New York-based analyst firm MRB Partners said in a report that bitcoin's 10-year rally may be nearing its end.
As a justification, analysts cite growing concerns about the impact of cryptocurrencies on the environment, possible regulatory risks, negative technical trends and the future reduction of monetary stimulus measures, writes ttrcoin.
"Easy money helped inflate the cryptocurrency bubble, and the gradual decline of this trend around the world will eventually be an obstacle to speculative digital assets," MRB Partners noted.
Governments and regulators will "stop the music" for bitcoin, said Pascal Blank, investment director at Amundi.
The top manager of the French company, which has more than 1.7 trillion euros in assets under management, called cryptocurrencies a "farce" and a symptom of bubbles in financial markets.
In March, experts from Amundi, which in Europe is second only to Allianz in terms of assets, published a study of the cryptocurrency market. In it they noted the low liquidity of digital assets and the possibility of collapse of quotes due to strict regulation.
According to Russian billionaire Oleg Deripaska, whose fortune is estimated at $4.7 billion, the new U.S. administration plans to "take over" the cryptocurrency market.
Joe Biden's team expects to put these assets under its control. That is why we are seeing a tightening of the U.S. authorities' policy towards bitcoin holders and cryptocurrency exchanges, Deripaska wrote in his Telegram channel.
The White House is interested in the market, the capitalization of which already exceeds $1.5 trillion, the billionaire believes. If you get control over these funds, they can be used in the refinancing of debt obligations of the U.S. budget.
"Environmental movements and regulation have been the main brakes on the current cryptocurrency rally. Nevertheless, the more substantial legitimacy of the current rally through the participation of big capital in legitimate schemes suggests that such issues will still be resolved in favor of continued profits," notes the FxPro analyst team.