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Bitcoin, worth less than 50 thousand dollars. Cesarano (Intermonte): “Worrying volatility”

Again that Bitcoin is on Roller coaster. After a difficult weekend, the queen of cryptocurrencies below 48,000 has returned, with a significant decline to this day: exactly she stands by $ 47,514, marked a descent of the 5.84% in the last 24 hours. The value, as from one of the messengers. explained Antonio Cesarano, Intermonte’s chief strategist, was pushed down by negative news about the Omicron variant and possible pressures from the US Federal Reserve to fight rising inflation. A real breakdown when you think of the value reached between late October and early November, when Bitcoin hit $ 64 thousand after crossing the threshold bet quote 70 thousand.

This is a volatility to which the virtual currency has now got used to in the markets, but which is becoming increasingly worrying, as he pointed out last Friday Fabio Panetta, Member of the ECB Executive Board, cryptocurrencies now weigh more than $ 2.5 trillion. It is a question, says Panetta, of “an amount” higher than the value of sub-prime mortgages which acted as the detonator of the global financial crisis from 2007-2008 “.

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«Lately, Bitcoin – Cesarano tells us – has become a thermometer of the Market shocks, with a more risk-taking attitude. At the same time, however, the digital alter ego of gold is also revealed. That is why it is associated with the negative impact on the stock markets News about Omicron and for that it is mostly okay under conditions of ample liquidity or low discount rates. If there are signs in the opposite direction, such as an accelerated taper that the fed“Bitcoin is affected”.

Antonio Cesarano, Intermonte’s Chief Global Strategist

“Bitcoin – adds the global chief strategist – is inherently limited, A maximum of 21 million prints: we are 90% of those who are “mined”, as they say in the jargon. The liquidity problem is therefore fundamental and cryptocurrency is, in a sense, the other side of quantitative easing. So this market needs to be regulated. Let me explain it better: with the first ETF in the USA (with the ability to buy cryptocurrency-related products on the exchange) it is now easier to use Bitcoin in finance, but without strict rules the market tends to expand as the downside of the enormous liquidity in circulation, with possible serious side effects“.

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To do this, we need a global approach on a planetary level, starting with big countries and we can’t wait any longer. «Regulatory – explains Cesarano – means Avoid embezzlement and excesses for all cryptocurrencies, which sometimes really spring up like mushrooms because they are based on an open platform like the blockchain. As part of those currencies that cannot be printed indefinitely and outside the laws of central banks, yes lays partial monetary leverage is called into question so much it helps countries like Italy. We also need limits for this ».

Possible future fluctuations

So is the cryptocurrency simply destined to lose value again? “It’s not new that Bitcoin is so volatile – replies Cesarano – but in this case the change happened very quickly because the Fed has called inflation “immortal” and has agreed to cut purchases and raise discount rates faster than expected. In absolute numbers Making predictions about Bitcoin is extremely difficultuntil his essence is established, things will be like that ».

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For this purpose, the so-called “Stablecoin“(Like Tether, which is pegged to the dollar, and Facebook’s Libra, which has been blocked by the US Senate over doubts from governors and central banks), they could be a model for some.” di Intermediate forms for the search for stabilizationbut the ball is in the hands of the regulators, it is up to them to decide whether or not to give space to these shapes. A speech similar to the reasoning of the ETF on Bitcoin futures ».

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