Stablecoins Will Act as Catalyst for Mass Crypto Adoption – Here’s Why – Coinpedia – Fintech & Cryptocurreny News Media
Ddue to intense economic pressure and the Federal Reserve’s recent decision to raise interest rates, Bitcoin has fallen into a narrow band between $22,000 and $25,000. The crypto market has recently been closely watching the stock market, which experts say has further intertwined it with macroeconomic considerations.
According to a Fidelity Investments executive, dollar-pegged crypto-assets could increase the adoption rate of Bitcoin (BTC).
In a recent interview with Crypto Banter on his YouTube channel, Jurrien Timmer, director of global macro at Fidelity, said that stablecoins will serve as a catalyst for increased cryptocurrency acceptance in the future.
Bigger problems, tougher solutions!
Jurrien Timmer argued that a regularized stablecoin will soon provide investors with a safe haven as it will entice both established large investors and new small and medium-sized investors to explore the market.
“If stablecoins are regulated, proven safe, and the space is legitimized, then I think maybe investors will have more confidence in the network effect and the adoption curve of Bitcoin, which has followed a number of historical trends whether it’s internet usage or mobile phones.”
In his opinion, more investors can start to feel confident as the promise of this expanding adoption curve can really be realized as the space gains legitimacy and scale.
However, according to Timmer, the technical models and charts show how significantly the last crypto winter affected the markets. He advises investors to feel safe before considering re-entering the market.
He also explained why he is wary of the impending crypto winter, arguing that all models are already underperforming as a result and that significant financial pain is likely. As a result, since all investors have to contend with market volatility, it can have an effect on both long-term and short-term investors.
Breaking the momentum
As cryptocurrency traders try to figure out if crypto winter is over, Bitcoin is still miles away from ATH. However, positive movement is likely now as the selling pressure has reduced to a large extent. Momentum traders can step in and seize the opportunity.
Given that the current volatility will persist through the end of the year, it is crucial to see where the wave will take cryptocurrencies. While cryptocurrency volatility remained low at the time of writing, however, Bitcoin’s price fell below $23,000.
