According to Deutsche Bank analysts, Bitcoin's (BTC) market capitalization of $1 trillion and potential for sustained development have made the cryptocurrency "too important to ignore."
Bitcoin rates were under $1,000 per coin at the start of 2017. Bitcoin hit nearly $20,000 in December of the same year. Then came the crash, with the price falling to $7,000 by February 2018.
Prices have risen sharply in the last year, from $4,900 in March 2020 to a record peak of $60,000 last Saturday. The arrival of hedge funds was one of the most significant factors behind bitcoin's increased demand, the report mentioned.
Bitcoin is expected to remain ultravolatile due to its already limited tradability; a few more major transactions or market exits may dramatically alter the supply-demand equilibrium, according to Deutsche Bank analysts.
The next two to three years should be a watershed moment for Bitcoin, with people watching digital currency trends for signs of acceptance.
There are over 5,000 cryptocurrencies in total, but Bitcoin is by far the most valuable in terms of market capitalization. Bitcoin's total market capitalization is more than four times that of Ethereum, the second-most-traded cryptocurrency.
This week, Bitcoin's (BTC) price has struggled to break through to fresh all-time highs above $60,000. Following the breakout above $58,000, negative news from India, as well as general macroeconomic weakness and a rebounding dollar, seem to have put an end to the rally.