- MRB Partners said the rally in Bitcoin over the past year may be close to an end.
- MRB said overleveraging has also become a mainstream issue for crypto markets.
Since the recent crypto market crash, some analysts have started predicting Bitcoin’s next move.
According to New York-based MRB Partners, the rally in Bitcoin over the past year may be close to an end. MRB Partners is a boutique investment research firm.
Based on a report, the analyst referred to growing concerns with cryptos’ environmental impact. The analyst also mentioned possible regulatory risks, negative technical trends, and a future cut in monetary stimulus. More so, MRB Partners cited that bitcoin could have a tough time ahead.
MRB Partners said,
“Easy money has helped fuel the crypto bubble, and a slow unwinding of this trend globally will ultimately become a headwind for the speculative digital asset.”
Of note, BTC suffered a volatile period in May. However, it appears to recover. But, some analysts think BTC will go down despite the possibility of a brief bounce.
Further, MRB raised nature concerns. The analyst said to reduce the negative environmental impact, crypto mining systems would need to let miners produce tokens. They need to let them mine for significantly less cost compared to their current price.
As per MRB, increased mining efficiency could lead to lower energy consumption. Precisely, it happens during corrections in the price of bitcoin.
In addition, MRB said overleveraging has also become a mainstream issue for crypto markets. The analyst noted that regulators are now being tasked with gauging the risks arising from increased non-financial exchanges.
This article was first published on coinquora.com