Bitcoin mania ‘not a fad,’ says Wedbush analyst

Wedbush Securities, a prominent wealth manager based in Los Angeles, California, believes Bitcoin (BTC) has become a staple of the global financial market.

Managing Director Dan Ives told clients on Wednesday that companies’ adoption of bitcoin is a much bigger story than simply predicting the future price of the digital currency.

“We think the story and topic here is much more than just investing in Bitcoin and predicting its future price, but rather about the potential ramifications that cryptocurrency, blockchain and bitcoin could have across technology and the corporate world over the next decade,” he said in a note obtained by CNBC.

He also explained why the so-called bitcoin obsession was not a fad:

“From Paypal and Square, to the likes of Nvidia, Tesla, IBM, Visa, Mastercard and many other companies across vertical sectors, we believe that the trend of transactions, bitcoin investments, and blockchain-based initiatives could increase in the coming years because this bitcoin cryptocurrency is not a fad in We have seen, but it is the beginning of a new era in the digital currency. “

Wedbush Securities has been at the forefront of adopting Bitcoin since at least 2014. A Wedbush report released the following year described Bitcoin as a potential disruptive factor in the current financial infrastructure, which would cause its value to rise over time.

The Bitcoin adoption story accelerated last year as corporations and large corporations sought exposure to the digital asset. This trend appears to be intensifying after Tesla confirmed that it has committed $ 1.5 billion of its cash reserves to BTC.

Although Bitcoin has acquired a reputation for being extremely volatile, its price volatility appears to have eased from the previous bullish cycle that peaked in 2017. As reported by Cointelegraph on Wednesday, Bitcoin’s 60-day volatility is much lower today than it was when The cryptocurrency topped up near $ 20,000 in December 2017.

BTC price peaked at $ 51,721 on Wednesday, a new all-time high, according to TradingView data.