Despite a price fall of more than 50% from its all-time high in November 2021, bitcoin (BTC) continues to make bullish forecasts. Deutsche Bank Research senior analyst Marion Laborere is among those who believe the value of cryptocurrency will continue to rise. She also used an interview with CNBC to explain her view based on the relationship between supply and demand in the context of impending regulation.
Impact of increased demand despite limited supply
While the cryptocurrency market has experienced significant volatility over the past few months, Ms Laboure said it was not about to stop. However, the analyst believes that the advent of regulation will attract more investors, which will increase market liquidity. Therefore, she predicts that the bitcoin market will have a weaker ratio and that buying pressure will cause prices to rise although more than 90% of bitcoins are already in circulation.
“In the case of bitcoin, we have a limited supply, more than 90% of bitcoins are already in circulation and when you have a steady supply with increasing demand, prices tend to rise as we have seen over the past year. . Another factor we can look at is regulation. Regulation is imminent and cryptocurrencies may become more widely accepted in the future“, she said.
Terra’s fall illustrates the difference between bitcoin and the rest of the market
Continuing with the regulatory aspect of the crypto markets, Ms Laboure confirmed this this is more necessary than ever since the collapse of the Terra ecosystem. Regarding this episode, the analyst said it gave a perfect illustration of the difference between bitcoin and other cryptocurrencies, especially newer ones in the market. She also expressed her desire to take this difference into account when regulating the market.
“I think what has happened recently is like a good reminder that not all cryptocurrencies are the same. Some are also very new, very risky and very different, so we should not compare bitcoin which is older and largest in terms of market capitalization with newer cryptocurrencies.“Mr Laboure said.
Growing demand for bitcoin while its supply is only declining in the market is therefore the main factor that would guarantee the growth of its value according to Marion Laborere. A safer market that would attract more investors, this demand could increase with the advent of regulation, leading to a rise in the price of cryptocurrency.
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Luc Jose Adjinacou
Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and put forward my pen information related to this ecosystem.