A senior economist at Deutsche Bank predicts Bitcoin (BTC) will remain “ultra-volatile” for the foreseeable future.

Marion Laboure, who also works as a market strategist at the banking giant, says BTC could potentially become the 21st century gold down the road. At this point in time, Laboure says BTC’s high level of volatility keeps it from serving as an effective store of value, and she does not expect wild price swings to disappear any time soon for three reasons.

“I expect it to remain ultra-volatile in the foreseeable future. I see basically three reasons for this: first, about two-thirds of Bitcoins are used for investments and speculation. Second, due to its limited tradability, just a few additional large purchases or market exits can significantly impact the supply-demand equilibrium. Third, Bitcoin’s value will continue to rise and fall depending on what people believe it is worth. Small changes in investors’ overall perceptions about Bitcoin can have a large impact on its price.”

Looking at the rankings of crypto assets by market cap, Laboure says she doesn’t believe any other digital currency will surpass Bitcoin or Ethereum (ETH) in the next five years.

“It seems very unlikely to me, because of the network effect. Bitcoin enjoyed first-mover advantage and is now the most traded and well-known crypto-currency. And Ethereum has several real applications.”

The economist points to ETH’s ability to support decentralized finance (DeFi) and non-fungible tokens (NFTs).

“If Bitcoin is sometimes called ‘digital gold,’ Ethereum would then be the “digital silver’!”

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Former U.S. Treasury secretary Larry Summers says there’s one key thing that the crypto industry needs in order to thrive.

In a new interview with Bloomberg, Summers says that nefarious financial activity is inherent in the crypto space, and like other industries, digital assets will require regulation to become safe and reliable.

“Let’s start from the word crypto. It suggests a desire for secrecy with respect to large financial sums, and we have large financial sums happening in secret. You have risks of money laundering, risks of supporting various kinds of criminal activities, risks of innocent people being ripped off.”

Summers likens the conversation around regulation in crypto to similar discussions in industries like the big tech and the stock market.

“It’s not entirely unlike the discussions of the big tech companies. They need to have a regulatory framework. They don’t just need it for the protection of their consumers. They need it for the protection of themselves.

We wouldn’t have the New York Stock Exchange as the center of the world’s stock markets if we didn’t have a strong SEC and that’s a competitive asset ultimately even if people don’t like some of the rules some of the time. I think that’s the recognition the crypto community is going to need to come to.”

The economist says that certain aspects of the crypto industry can spark huge waves of innovation, but that the community needs to cooperate with governments to make it happen.

“Ultimately for blockchain-based payments, that industry is going to do better regulated in a sound way rather than trying to be some kind of libertarian paradise, and I think the crypto community needs to recognize that and needs to work cooperatively with governments. If they do that, I think that this innovation can be one of the important innovations of this period.”

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Popular on-chain analyst Will Clemente says those who are bearish on Bitcoin (BTC) might be in for a surprise.

The closely followed analyst tells his 273,000 Twitter followers that he believes Bitcoin bears will be in disbelief as he predicts BTC’s value will be much higher in 30 days.

“Bears are wrong, goodnight. Wake me up in a month.”

To support his view, Clemente shares a chart comparing the price of BTC and the supply ratio of illiquid coins, or coins that are rarely sold. According to the on-chain analyst, the illiquid supply shock ratio is a good leading indicator as BTC tends to follow the upticks or the downward moves of the metric.

“Supply became liquid in late April/May, was a leading indicator of the ensuing price drop.

Supply got locked up in late June/July, this bull div was another leading indicator of the price reversal that followed.”

Clemente also says that both whales, or entities with more than 1,000 BTC, and minnows, which are entities with less than 10 Bitcoin, have been in steady accumulation since the flagship crypto tumbled more than 50% in May of this year.

The popular analyst says that using Glassnode’s data, he’s put together a model that marks a floor price for Bitcoin. According to Clemente, the absolute bottom for BTC is currently sitting about 10% below current prices at time of writing.

“Using Glassnode’s illiquid supply data, this model is essentially trying to estimate a floor based on Bitcoin’s real-time scarcity. Although price has indeed dipped below briefly in mid-2017 and earlier this year, it has never stayed below for long and still remains valid as a proxy for an estimated floor in my opinion. Currently, $38,283.”

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