In the last few weeks of 2017 interest in Bitcoin has turned into almost a fever, and some investors and analysts expect that this year the crypto-currencies will rise in price even more.
Here are five forecasts based on interviews with experts of the crypto-currency Market.
1. More organizations will enter the crypto-currency market
According to him, 2018 will be the year when institutional investors will enter the crypto-currency market.
In the meantime, the number of investment products related tooriented on them is increasing.
In addition to the launched in December bitcoin futures CME and Cboe, their derivatives are planned to launch Cantor Fitzgerald and. Analysts also expect that regulators will approve the creation of bitcoin-ETF in the second half of 2018 or early 2019.
2. Regulation will become tougher, and the price of bitcoin will decrease
At the same time, regulators are likely to try to limit speculation on the crypto-currency market.
In the past few months, the SEC has been more and more frankly warning investors about the risks associated with crypto-currencies. The regulator suspended the trading of shares of several companies because of fears caused by their statements on the topic of crypto currency.
“We will see a tightening of the regulators’ position,” said Graham of Canaccord. He expects that this will cause a significant change in prices throughout the sector.
Bitcoin has grown by more than 1500% over the past 12 months, but its price is still 18% below the historic maximum reached in mid-December. At the same time, crypto-currencies with less capitalization over the past few weeks have risen by hundreds of percent, as a result of which the cumulative market capitalization, according to Coinmarketcap, exceeded $ 770 billion.
The actions of regulators can become an obstacle to this growth. In September, when China banned ICO and restricted exchange trading bitcoin, the largest crypto currency fell by more than $ 2000.
Spencer Bogart, managing director and head of research at the venture company Blockchain Capital, believes that many crypto-currency funds will not withstand a 25% decrease in the asset price for the month.
According to the financial research firm Autonomous Next, there are 175 crypto funds in the market, 120 of them were launched in 2017.
Autonomous Lex Sokolin, the director of Fixture Strategy Autonomous, on the contrary, predicts that the number of crypto-currency funds this year will reach 500. However, in his opinion, the focus will not be on the number of funds, but on, the volume of which may reach $ 20 billion .
3. The market will be very volatile
Contradictory forecasts for the crypto-currency market sound against the backdrop of expectations of an even more serious bitoccothis year.
Ari Paul, chief investment officer of the crypto-cash company BlockTower Capital, predicts that at some point in 2018 bitcoin will trade at $ 4,000 and $ 30,000.
Analysts believe that bitcoin will grow, including because investors will bet on more forks and, consequently, that with these forks they will get free coins for free.
August’s, which resulted in Bitcoin Cash, was the beginning of a new , said Ramon Quesada, a well-known participant in the crypto-currency community of Spain. Now the developers “use the brand bitcoin” and share the main , releasing a new koin.
Now bitcoin is trading around $ 15,000, and Bitcoin Cash is above $ 2,400.
Bitcoin is still experiencing many problems, including highfor transactions and their low rate.
4. Bitcoin will prevail, but other crypto currencies will grow
While the price of bitcoin has stalled in the past two weeks, smaller crypto-currencies such as Ripple, Stellar and Tron have been among the largest in terms of capitalization.
Eric Voorhes, the head of the digital assets exchange ShapeShift, said that if a year ago beatcoin dominated, now about half of the transactions on the platform are not connected with it at all.
Nevertheless, bitcoin will still benefit from interest in altcoyins. According to analysts, since it remains the most authoritative crypto currency, beginners often start working in the market with it.
5. Investors in the stock market can invest in IPOs related to the crypto-currency market
With the growing interest in crypto-currencies, companies associated with this industry have begun to cost billions. Leading US crypto currency platform Coinbase, whose estimate is 1.6 billion dollars, announced its intention to conduct an initial public offering.
According to him, crypto-exchange companies would like to make a good impression on American regulators, so they “will rely on old-fashioned capital.”
But just as more stringent regulation in the US has stimulated the development of the blockbuster industry outside the country, and the first crypto-IPO can not take place in America.
According to Gilbert, Propel is an indirect minority investor in Coinbase.
Regardless of what was said above, investors should be extremely cautious with companies that claim to be involved in the crypto-currency industry and add the word “block” to the title. Some penny stocks took off thanks to such statements, and this prompted regulators to declare the risk of fraud.
Market movements repeat the events almost two decades ago, when the prices of many stocks jumped after adding “.com” to the names of companies.
According to a study conducted at Purdue University in 2000, companies began adding “.com” to their names in June 1998, and in the first five months of 1999 the names were changed on average by seven companies per month. Most of them traded above the market, and regardless of the degree of involvement in the Internet industry, the name change resulted in an increase of 74% over the next 10 days.
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