Cryptocurrency Experts Hint At A Bullish 2018
According to the latest bitcoin news posted on “https://www.cnbc.com/2018/02/07/bitcoin-price-could-hit-50000-this-year-experts-say.html” target=”_blank” rel=”noopener noreferrer nofollow”>CNBC, cryptocurrency market may hit a market cap of $1 Trillion this year and Bitcoin price may touch $50,000.
Cryptocurrency experts are keeping their fingers crossed about the value of these digital assets in toppling over the trillion-dollar mark in the aftermath of a violent sell-off. The price of Bitcoin dropped below $6000 recently and was trading at $8200 at the time of publishing this article.
Such instances caused $550 billion in getting wiped off from the crypto market in value. Industry insiders are however painting a completely different picture much to the delight of cryptocurrency enthusiasts worldwide.
Thomas Glucksmann, the head of APAC business development at Gatecoin, a cryptocurrency exchange, revealed to CNBC via an email on Tuesday that,
“Increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market’s rebound and push cryptocurrency prices to all new highs this year. There is no reason why we couldn’t see bitcoin pushing $50,000 by December.”
The technology advancements referenced by Glucksmann include bitcoin’s Lightning Network which is expected to boost up transaction speeds.
“One possible appetizer for the bulls, or the catalyst for the recovery, will be the release of another cryptocurrency backed instrument listed on a major exchange. There are several candidates in the pipeline, it’s only a matter of time until we have a cryptocurrency backed ETF (exchange-traded fund).”
Both CBOE and CME had released Bitcoin futures products last year for aiding in crypto trading. Adena Friedman, the CEO of Nasdaq revealed to CNBC in a recent interview that the exchange is “continuing to investigate” cryptocurrency futures. The crypto market still has a gap for bitcoin exchange traded fund (ETF) which will track the asset price and allow people to enter into Bitcoin trading without actually having to purchase the digital tokens.
The Winklevoss twins, founder of Gemini Trust digital currency exchange applied for an ETF last year which got rejected by the regulatory body.
Onset Of Crypto Winter
2017 had been an exceptional year for cryptocurrencies with its price and market cap reaching stratospheric heights. Bitcoin occupying the numero uno slot in crypto ladder rose by 1300% while ethereum underwent an 8000% rise and ripple surged by 32000%.
However towards the end of 2017, a large number of market corrections caused the price of these digital assets to take the downswing. Certain experts hold the view that the bull will once again enter the arena in 2018 with bigger returns for crypto holders and investors.
Jamie Burke, the CEO of venture capital firm Outlier Ventures focusing on blockchain investments revealed to CNBC by email on that:
“We believe after February the market will likely go on a bull run comparative if not greater than last year potentially reaching the trillion-dollar mark before a proper crypto winter sets in where the market becomes more focused on proper market fundamentals.”
The Boiling Issue Of Utility Tokens
Commentators have already noted that crypto assets such as Bitcoin lack in fundamental value. Others have however suggested that virtual tokens such as Ethereum could have a value potential in days to come with rapid advancement and development in the industry.
Companies like NEO and IOTA are trying to come up with Blockchain platforms for assisting the developers in their future projects. NEO and IOTA tokens can power these applications. The same also holds true in the case of Cardano,Waves,EOS and Ethereum.
Mick Sherman, the CEO and co-founder of data science company Hercules Tech which focuses on big data and Blockchain feels that these digital coins are bound to undergo tremendous rise in price throughout the greatest part of 2018. Sherman conveyed to CNBC via an email that,
“Utility tokens and assets with a working platform and a clear-cut reason for requiring both a blockchain and their own token, are more likely to appreciate in value this year. Some of these cryptoassets will not be used for years, meaning they have no utility value.”
Sherman also issued warnings about the rise of more bubbles in the Blockchain sector:
“The revolutionary nature of blockchain technology is what’s driving the hype and even though we may be years away from viable blockchain-based assets, we may very well see several more bubbles,”
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Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.