Searching for somebody to play the bearish case with regard to Bitcoin and different cryptocurrencies? Look no additional than the Head of Funding Technique at Barclays Sensible Investor, Will Hobbs — who claims “the rout in cryptocurrencies remains to be not completed.”
Following the Financial institution of England’s warning to Metropolis bosses that implementing cryptocurrencies into their enterprise plans poses “reputational dangers,” a consultant from the UK’s high institutional funding agency has famous his perception that the cryptocurrency market will proceed to be dispelled.
In response to Specific.co.uk, Barclays Sensible Investor’s Will Hobbs believes the costs of cryptocurrencies have been little greater than the results of speculative “frenzy,” stating:
The frenzy surrounding crypto has ebbed and flowed with costs. Via the a number of hundred % of ascent over 2017, to the c.70 % decline since Bitcoin’s 2017 peak there was no commensurate — and even perceptible — change within the elementary prospects within the crypto foreign money. The identical applies for many of its peer group.
Conventional monetary establishments within the UK have by no means proven a lot optimism for cryptocurrencies. Nonetheless, Barclays has been one of many extra bullish regarding the rising asset class. In April, reviews surfaced that the London-based multinational funding financial institution and monetary companies firm was contemplating probably opening a Bitcoin buying and selling desk.
Barclays additionally notably serves as Coinbase’s financial institution within the UK — penning the deal at a time when many conventional banks world wide started displaying aversion to cryptocurrency dealings.
However, Hobbs didn’t chorus from sharing some harsh phrases with regard to Bitcoin and the cryptocurrency market, stating:
We proceed to argue that with out a position within the international financial system, the intrinsic worth of many of those crypto currencies nonetheless sits a great distance beneath their present buying and selling ranges. This position remains to be elusive in lots of circumstances, whereas the arguments behind the thought of a future ‘bitcoin customary’ are nonetheless economically illiterate.