The year 2022 does not look like a happy year for cryptocurrency investors, as Bitcoin, the largest currency in the market capitalization, plunged by 38%, to $43,000 compared to its highest peak of $69,000 last November. But the question now is, will the currency track continue to rise, or will it fall further?
Top investment banks split Between optimism and pessimism about cryptocurrencies in 2022. One of the pessimists is HSBC, which has taken a tough stance against cryptocurrencies since the middle of last year, warning its clients against investing in them, and banning investment through its platform in companies that own these currencies.
Bank of America believes that cryptocurrency returns will decline after about 18 months, in light of the strong decline and expected volatility during the current year with the end of stimulus policies and the decline in liquidity, and thus the inability of the markets to repay debts.
Barclays also warns against investing in cryptocurrencies in 2022, considering it to carry too high a risk.
UBS joined the warnings and believes that cryptocurrency fluctuations make it harmful, especially for small capital, and that investors should calculate the adjusted returns behind these fluctuations. The bank advises investing in financial technology companies.
In a survey conducted by Nickel Digital Asset Management, one of the largest European hedge funds for crypto assets, with 50 wealth managers and 50 global investment institutions all managing over $100 billion of funds, they said they refrain from investing in Bitcoin due to volatility, lack of regulatory environment, information security and abuses. environmental.
On the other hand, banks and other financial institutions expect cryptocurrencies, especially Bitcoin, to rise, but these banks do not necessarily invest directly in cryptocurrencies.
For example, Goldman Sachs believes that a Bitcoin value of $100,000 is feasible, as the currency continues to attract investors from the gold market.
Standard Chartered Bank also expected Bitcoin to reach $100,000 at the beginning of this year, and expected it to reach $175,000 in the long term, and the value of the second largest cryptocurrency Ethereum to range between $26,000 and $35,000.
Morgan Stanley was the first bank to allow its wealthy clients access to 3 funds investing in cryptocurrency, through its subsidiary Counterpoint Global.