Banking giant Wells Fargo is bullish on Bitcoin, says crypto adoption could explode
- Wells Fargo believes it is not too early for institutions to adopt Bitcoin as crypto users grow rapidly worldwide.
- The banking giant manages $1.9 trillion worth of assets through private placements.
- Wells Fargo says crypto has reached an inflection point similar to the internet at the turn of the century.
Wells Fargo believes crypto has risen from virtually zero, and adoption is poised for hitting a hyper-inflection point. The banking giant argues that Bitcoin is in a similar phase as the internet in the mid-to-late 90s.
Wells Fargo believes it's not too late to buy Bitcoin
Multinational financial services giant Wells Fargo has a bullish outlook on crypto. The banking giant's global investment strategy team believes that over 200% in annualized gains of Bitcoin does not mean it is "too late" to invest in the cryptocurrency.
Wells Fargo draws similarities between the adoption of the internet in the 90s and cryptocurrencies now.
The report reads:
We understand the 'too late to invest' argument but do not subscribe to it. [Bitcoin] could soon exit the early adoption phase and enter an inflection point of hyper-adoption.
Wells Fargo believes that Bitcoin is a digital invention with current infrastructure that could have a steep rise in adoption. Institutional investors have joined the race to acquire Bitcoin and gain exposure to the cryptocurrency through "private placement."
Analysts at the bank explain the steep Bitcoin adoption curve is fueled by regulatory clarity and adoption by institutions. The banking giant argues that the direct purchase of Bitcoin on an exchange involves complex technology.
The report reads:
We expect that cryptocurrencies eventually will follow an accelerated adoption path similar to recent digital inventions.
Bitcoin's adoption has increased consistently over the past month. Analysts believe that recent events and rising institutional capital inflow are fueling a bullish narrative for Bitcoin price.
@CryptoSultan21, a crypto analyst and trader, believes that Bitcoin price has set eyes on the $47,000 target.
Is The Bearish Trend Over?
— Sultan (@CryptoSultan21) February 7, 2022
If history is any indication, then #Bitcoin seems to be emulating the final phase of a prolonged bear trend.#BTC is currently testing the 50MA around 43k.
A concrete break of the 50MA can be indicative of an imminent rally towards ~47k.$BTC pic.twitter.com/1zrOUo8Bx8
FXStreet analysts have predicted that Bitcoin price targets $50,000.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
