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Crypto Analyst says Bitcoins Bubble has not yet been formed

Bitcoin’s price since the beginning of October has been on a major upswing. Developments across the market, such as growing institutional adoption and the launch of a Bitcoin exchange-traded fund (ETF), are among the factors attributed to these gains.

Despite gaining by almost 100% since the lows of $30K reported in late July, one analyst still believes that Bitcoin has not yet entered into a “bubble”, predicting more gains to come.

The Real BTC Bubble is not here

According to an analyst on Twitter who goes by the handle venturefoundEr, investors are yet to see the real Bitcoin bubble.

“Bubbles form when the momentum of short-term returns attracts enough money that the makeup of investors shifts from mostly long-term to mostly short-term,” he wrote. This could add to the argument that the current bull market has been inspired by institutional investors and that retail investors have yet to join the rally.

Short-term holders are yet to enter the market with a strong upswing. These holders currently account for around 17% of the entire BTC supply, which is an all-time low in the entirety of Bitcoin’s supply.

The analyst also goes ahead to explain the instances when a market bubble is formed. He stated that an asset enters into a bubble when traders move rationally towards short-term traders and not when traders irrationally move towards long-term trades. These traders chase short-term trades to benefit from a momentum that was already feeding on itself.

Retail Interest in Bitcoin still Low

The current market cycle shows that retail interest in Bitcoin is still very low. Despite the 100% gains in BTC since the lows of $30K, retail investors are still not reacting to the fear of missing out (FOMO).

The FOMO levels in the market are significantly lower than in May this year when the market was at its peak and even lower than the 2017 bull market. Moreover, Google Trends shows that search terms related to ‘buy bitcoin’ and other terms that show interest from new investors are relatively low.

As aforementioned, most analysts have attributed the recent rally to institutional investors. With the approval of a BTC futures exchange-traded fund in the US, these investors are expected to continue accumulating even more gains.

Bitcoin is just $2000 shy of reclaiming its all-time highs of $64,000. It is currently sitting on a six-month high of around $62,000, following a $20,000 gain over the past month.

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Bank of America Sees Massive Opportunity in Metaverse for Entire Crypto Ecosystem

Bank of America’s strategist says that the metaverse is a massive opportunity where cryptocurrencies will be widely used as currencies. “I definitely believe this is a massive, massive opportunity,” he said. Bank of America’s Metaverse Prediction Bank of America’s strategist, Haim Israel, told the Insider Tuesday that the metaverse is a massive opportunity for blockchain::Listen

Bank of America Says Metaverse Is a Massive Opportunity Where Cryptocurrencies Will Become Mainstream

Bank of America’s strategist says that the metaverse is a massive opportunity where cryptocurrencies will be widely used as currencies. “I definitely believe this is a massive, massive opportunity,” he said.

Bank of America’s Metaverse Prediction

Bank of America’s strategist, Haim Israel, told the Insider Tuesday that the metaverse is a massive opportunity for blockchain technology. In addition, he expects it to take cryptocurrency mainstream.

Israel is Bank of America’s managing director of research and a global strategist. He is also head of the global thematic research team at Bank of America Merrill Lynch. He detailed:

I definitely believe this is a massive, massive opportunity … You need the right platforms … that is definitely going to be a big opportunity for this entire ecosystem.

The Bank of America strategist predicted that the metaverse is where “we’re going to start using cryptocurrencies as currencies,” emphasizing that it will be where people finally start using cryptocurrencies widely for transactions.

However, the director of research believes that existing cryptocurrencies are likely to be too volatile for this purpose, expecting some types of stablecoins to come to dominate.

The metaverse gained much attention in October when social media giant Facebook changed its name to Meta. A parcel of real estate on virtual reality platform Decentraland was recently sold for $2.4 million and Republic Realm paid $4.3 million for a property in The Sandbox metaverse on Tuesday.

The Bank of America strategist also predicted that traditional payments companies will be much more interested in cryptocurrencies if they become widely used in the metaverse. “I see a lot of collaboration between the two,” he opined.

Earlier this month, global investment bank Morgan Stanley said that the metaverse is the next big investment theme. Last week, Grayscale Investments published a report stating that the metaverse is potentially a $1 trillion business opportunity.

Do you agree with Bank of America’s strategist about the metaverse? Let us know in the comments section below.

Crypto Analyst says Bitcoins Bubble has not yet been formed

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