The main risk for the cryptocurrency industry in the long term is government regulation. However, in the coming months Bitcoin’s price has a chance to reach a new all-time high. This was stated by HSE professor Evgeny Kogan in his Telegram channel.
According to him, regulators’ actions will be aimed at combating non-systemic digital assets. In contrast, central bank digital currencies (CBDCs) will be created.
“No one likes competitors: neither governments in politics nor regulators in economics,” said HSE professor Evgeny Kogan.
Evgeny Kogan stressed that predicting Bitcoin’s short-term movements is “impossible in principle.” Although the reasons driving the crypto market higher are known: massive liquidity injections by regulators and stimulus programs.
“In the next two to three months, the balance sheets of the Fed and other central banks will continue to grow, and there is a good chance that the cryptocurrency will be priced higher.”
Kogan also reminded of the risks associated with Bitcoin’s high volatility.
“For nervous types and people with high blood pressure, this market is better avoided—that’s a fact. The assertion that this is not the right place to allocate pension savings, at least today, is a matter of debate. But in my view, it’s not worth it yet,” he added.
Earlier, Evgeny Kogan predicted that in 2021 the cryptocurrency market would undergo correction, which would begin together with a correction in the stock market and other assets.
Analysts at investment bank Macquarie say CBDCs will be outcompeted by Bitcoin and other cryptocurrencies in the competitive race if the latter will take root as a means of payment in e-commerce.
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