Stack Funds, an issuer of crypto products and services, is confident that Bitcoin has a bright future and its dominance will only grow, all of which has been put down in a new report.
The firm is not counting on Bitcoin staying down despite the recent market rout that easily wiped out $500bn worth of crypto value in the matter of hours.
Bitcoin’s dominance has been on a steady decline since the beginning of 2021 despite the cryptocurrency’s value shooting up, Stack Funds reported.
That is not surprising, as there have been numerous efforts to bolster other currencies and both Dogecoin and Ethereum have been buoyant on an overall bullish run.
Bitcoin’s present dominance rate sits at 40% compared to 72.3% in January. While this doesn’t look too good for the currency, Stack Funds argues the opposite – Bitcoin’s dominance is long due for a reverse trend and it is coming.
“We believe the rotational playbook has reversed as dark clouds loom over the markets. We are expecting investors to cycle back into Bitcoin as uncertainties increase as the markets undergo another reset. Hence, a bounce in Bitcoin dominance should occur, further supporting Bitcoin’s price in the short-term”, the report stated.
Stack Funds did not forget to mention the impact on recent volatility that comments by Elon Musk and China’s stance on cryptocurrencies have had. Yet, as Stack Funds argues, you shouldn’t expect Bitcoin to stay down.
Stack Funds analysts are not the only people out there who are optimistic about Bitcoin’s long-term prospects. JPMorgan Chase has confirmed that institutional investors are pulling out some of their Bitcoin holdings to reinvest in gold, but this hasn’t stopped the bank from maintaining its long running objective for BTC, expecting the currency to hit $140,000 in the long-term.
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