Bitcoin still has an upward trend in the long term, says the manager.

Source: Exame Original Title: Bitcoin still has an upward trend in the long term, says manager Original Link: Despite the strong drop in bitcoin observed in recent days, Bitwise still believes that the cryptocurrency has a long-term upward trend. According to the manager, the asset's value thesis remains intact, with a growing trend of institutional adoption that should support new valuations.

The cryptocurrency has accumulated a decline of over 25% since the beginning of October and was traded this week below $90,000, operating at its lowest price since April. However, Bitwise stated that it is not concerned about the future performance of the asset.

The manager assesses that the recent declines are short-term, as there has been no change in the value of the asset. Regarding the topic, Bitwise highlighted that bitcoin attracts investors for being a digital service of value storage, not an object for investments.

And this characteristic is what should sustain prolonged highs in the short term and an increasing adoption in the financial market. To justify the thesis, Bitwise presented a comparison between the cryptocurrency and the technology giant Microsoft.

“To state the obvious: the value of Microsoft shares is tied to how many people want its service. And the more people want the service of bitcoin, the more valuable it becomes; if fewer people wanted it, its value would be lower; if nobody wanted it, its value would be zero.”

Bitwise emphasizes that the very service logic of the cryptocurrency compels investors to acquire the asset: “You cannot subscribe to or rent the service of bitcoin. The only way to obtain the service is by purchasing the asset.” The manager also pointed out that it sees a growing demand for the cryptocurrency.

The report highlights that the cryptocurrency has appreciated by 28,000% in the last decade, and that there are signs of growing institutional adoption of the asset, especially due to significant purchase announcements made in recent months. Therefore, the manager's thesis remains bullish.

“In our increasingly digital age, with governments accumulating more and more debt, I imagine that many more people will want this service [of bitcoin] in the future,” said Bitwise in the report.