Amundi Chief Investment Officer Mortier Vincent and Macroeconomist Perrier Tristan published an article analyzing the current state and outlook of the crypto market.
Amundi Executives Think Bitcoin Could Go Bullish
Amundi, a major European asset manager, believes that the current cryptocurrency winter and recent market crashes do not necessarily indicate the inevitable failure of digital assets like bitcoin (BTC).
Moreover, the authors of the paper suggest that nominal interest rates could stabilize or decline if inflation remains high but stops rising. In such a scenario, Bitcoin could enter a bull market, according to Amundi’s investment managers.
“The current environment may be more favorable for an asset with finite supply and long-term prospects, as its main appeal lies in its potential for the future rather than its current condition. This may imply that Bitcoin’s limited supply and its long-term prospects could still be attractive to investors, despite its recent struggles as an inflation hedge.
Although bitcoin (BTC) was unable to protect investors against rising inflation in 2021 and 2022, its limited supply could continue to attract attention if inflation remains above banks’ targets. power stations.
Amundi’s Paris-based investment managers suggest bitcoin’s potential as an inflation hedge could still be a factor in its favour.
Optimism about the future of crypto despite recent turmoil
Vincent and Tristan pointed out that Ethereum’s transition to a proof-of-stake blockchain is a successful example of industry efforts to reduce energy consumption. They also pointed out that the core values of crypto, such as the decentralization and immutability of transactions, are not affected by the recent crisis.
Despite the slowdown, major companies from various industries continue to show interest in crypto. For example, Blackrock’s acquisition of a stake in Circle in 2022 highlights the continued attention crypto receives from prominent players in the financial industry.
Recent market turmoil will likely lead to more realistic industry expectations, separating true competitors from others. Amundi executives compared the crypto to blue-chip tech stocks, which also went through periods of volatility before thriving.