Financial organisations are still debating the worth of Bitcoin (BTC), the most popular cryptocurrency, despite the adverse market circumstances.
Speaking with CNBC on May 27, senior analyst and author of “Democratizing Finance” at Deutsche Bank Research, Marion Laboure discussed her perspective on cryptocurrency price behaviour in the context of demand surpassing supply as regulation approaches.
Following the recent demise of the Terra (LUNA) ecosystem, Laboure argued that greater regulation is needed in the crypto industry. In this regard, she emphasised that Bitcoin and other cryptocurrencies, particularly those that are more recent to the market, have significant differences.
There is certainly a shortage of data surrounding cryptocurrencies, and regulation is needed since financial literacy is poor even in industrialised countries.
She concluded by saying: If anything, it serves as an excellent reminder that not all digital currencies are created equal.” We shouldn’t compare Bitcoin, the oldest and largest cryptocurrency by market capitalization, to other, more recent cryptocurrencies since they are all new, hazardous, and distinct.
She also said that the market has been suffering a substantial level of volatility in recent months and years, and she highlighted that this volatility is not going away any time soon.
When it comes to the cryptocurrency market’s future, she believes that it will become more accepted and that its liquidity would increase if it is regulated properly. Due to the increased liquidity, the market’s relevance may be lower.
The analyst made the following statement: There is only so much bitcoin in circulation, and as we saw last year, when you have a fixed supply and rising demand, prices tend to climb. This is exactly what has happened with Bitcoin. We may also consider regulation as a factor. So, regulation is coming, and we may see a wider usage of crypto in the future.”
For this reason, according to Laboure, Bitcoin’s value will continue to grow and decrease based on the perception of its value by its users.
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