Amundi’s chief investment officer Mortier Vincent and macroeconomist Perrier Tristan published an article looking at the current state and outlook for the crypto market.
Amundi Executives Believe Bitcoin May Turn Bullish
Amundi, a major European asset manager, believes that the ongoing cryptocurrency winter and recent market crashes do not necessarily signal the inevitable failure of digital assets like bitcoin (BTC).
Furthermore, the authors of the article suggested that nominal interest rates may stabilize or decline if inflation remains high but stops rising. In such a scenario, Bitcoin could enter a bull market, according to investment executives at Amundi.
“The current environment may be more favorable for an asset with a finite supply and a long-term outlook, since its main appeal lies in its potential for the future rather than its current state. This may imply that Bitcoin’s limited supply and long-term prospects could still be attractive to investors, despite its recent difficulties as an inflation hedge.”
Amundi Report
Although bitcoin (BTC) has failed to shield investors from rising inflation in 2021 and 2022, its limited supply may continue to attract attention if inflation remains above central banks’ targets.
Investment executives at Paris-based Amundi suggest that bitcoin’s potential as an inflation hedge could still be a factor in its favor.
Optimism in the future of cryptocurrencies despite the recent turmoil
Vincent and Tristan have noted that Ethereum’s transition to a proof-of-stake blockchain is a successful example of industry efforts to reduce power consumption. They have also emphasized that the core values of cryptocurrencies, such as decentralization and immutability of transactions, are not affected by the recent crisis.
Despite the recession, major companies from various industries continue to show interest in cryptocurrencies. For example, Blackrock’s acquisition of a stake in Circle in 2022 highlights the continued attention cryptocurrencies receive from prominent players in the financial sector.
The recent market turbulence will likely lead to more realistic expectations from the industry, separating the real contenders from the rest. Amundi executives compared cryptocurrencies to blue-chip tech stocks, which also went through periods of volatility before prospering.