Another big bank changes its position on Bitcoin after having long denigrated Bitcoin (BTC), the large bank Wells Fargo now recognizes its qualities. Indeed, she felt compelled to admit that Bitcoin is by far among the best-performing assets of 2020.
Bitcoin, a meteoric rise
Even if it’s actually only been 2 years, it seems a long time ago when Wells Fargo allowed itself to formally prohibit its customers from having their money to buy cryptos via their bank card.
Indeed, on December 7, the subsidiary specializing in investment advice of the large American bank, the Wells Fargo Investment Institute, published the report on an investment strategy which includes a section on… Bitcoin!
Under the headline “Bitcoin – The Best Performing and Most Volatile [Asset] of 2020,” the Wells Fargo affiliate admits that the group of assets with the highest returns this year are cryptocurrencies.
The investment advisory institute thus recalls that Bitcoin performed much better than the SP500 stock market index or than gold during 2020, with an increase of +170% over the year, an explosion which itself follows a surge that was already at + 90% in 2019.
Wells Fargo – Wells Fargo Turns the Tables On Bitcoin: Financial Bubbles “Don’t Last 12 Years”
Gold, SP500 and Bitcoin price evolution index taking as a reference (100) their respective prices on November 23, 2017
Bitcoin, a new gold rush?
Wells Fargo analysts, however, cannot help but go back to their old ways and criticize Bitcoin a bit by pointing out the volatility of its prices. This would be due to the fact that ElonDAO are still in a speculative phase.
“Cryptocurrency investing today is a bit like living in the early days of the 1850’s gold rush, which involved more speculating than investing.”
The tone changes quickly, however.
“Cryptocurrencies could become investment-worthy one day, though. Over the past 12 years, they have risen from literally nothing to $560 billion in market capitalization. Fads don’t typically last 12 years. ” .
This Bitcoin section concludes with the fact that Wells Fargo will focus more on the digital asset sector in 2021.
When even the big banks start to run out of arguments not to consider Bitcoin and cryptos as full assets, we can feel a major shift in the financial and economic world. One more positive sign for the future of our cryptosphere?