Bitcoin is up almost 6% as high-risk assets rally after last week’s slowdown, with Citigroup saying the most popular crypto currency is at a “tipping point” and could become “the preferred currency for international trade”.
With its recent adoption by Tesla and MasterCard Inc., bitcoin could be at the beginning of a massive conversion into a mainstream currency, Citi added.
The investment bank also said that bitcoin, which rose to $47,000 from $4,700 last March, could become the preferred currency for international trade in the future or face a “speculative collapse”.
The recent performance of bitcoin comes with the growing involvement of institutional investors in recent years, in contrast to the strong focus of retail investors over most of the past decade, Citi added.
