Experts speak about the reliability of BTC, while Morgan Staley explains why DeFi has weak prospects
The growth of the bitcoin rate is currently associated with an increase in the interest rate by the American regulator and the hopes of investors that the process of raising the rate to combat inflationary risks will be accelerated. This opinion was expressed by Roman Nekrasov, co-founder of the ENCRY Foundation.
According to the expert, rising prices for consumer goods indicate a high level of inflation. This means that investors will prefer to redirect part of their funds to more reliable assets — gold, government bonds, bitcoins.
“At the same time, I do not expect further rapid growth of the crypto market, and the reasons are the same — the growth of the key rate in the US makes Treasury securities an attractive asset (the key rate rises → the yield of government bonds rises). Therefore, on the one hand, high inflation contributes to the flow of investments into cryptocurrencies, on the other hand, this flow goes not only to gold/digital gold, but also to government bonds, which again become a profitable investment due to the growth of the key rate,” Nekrasov said.
He believes that in the near future the price of BTC will be in the range of $37,000–45,000. The movement of the rate of the first crypto coin near the $40,000 mark is also expected by the head of the analytical department of AMarkets Artem Deev.
According to him, there are no fundamental prerequisites for a significant increase in the price of digital assets now. But there are many moments associated with pressure — geopolitical tensions, tightening of the Fed’s policy and rising inflation in many countries
“However, the latter factor can attract even more investors to cryptocurrencies, which will stimulate its growth from time to time. But the time has not yet come for a bitcoin breakthrough — the rate will be in the $35,000–45,000 corridor for a long time,” the expert believes.
In turn, Morgan Staley analysts gave an opinion on the development of the DeFi industry in the near future. They believe that exponential growth of this sector should not be expected due to overcapacity and regulation. In addition, analysts do not believe that DeFi protocols have a positive impact on the existing financial system.
“Projects look like a way to attract cash flows to enrich their operators. DeFi is prone to hacking and the risk of financial crime because of its anonymity,” they wrote.
Do you think Morgan Staley analysts are right?