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Forecasts: What will happen to the market in this year’s currency

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

“Institutional investors are very interested in learning more (about crypto-currencies) and gaining access (to this market),” said Michael Graham, an analyst at Canaccord Genuity”.

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 to bitcoin oriented 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  Nasdaq . Analysts also expect that regulators will approve the creation of bitcoin-ETF in the second half of 2018 or early 2019.

“After the regulated bitcoin futures market appeared in 2017, in 2018 it’s time to approve the launch of the exchange fund,” said Nolan Bauerle, research director of CoinDesk. – At the end of 2017 Cboe has already applied for the launch of six crypto-exchange-traded funds. They could start work in 2018, and this would dramatically increase the share of institutional investors in the market. “

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.

“I think we could easily get rid of 60-75% of the crypto-currency hedge funds in this market. In this market situation, funds that are able to attract capital and work with it in a countercyclical regime, will significantly benefit, “Bogart said.

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  assets under management , 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   bitocco volatility this 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  hardcore , which resulted in Bitcoin Cash, was the beginning of a new  trend , 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  block , releasing a new koin.

Now bitcoin is trading around $ 15,000, and Bitcoin Cash is above $ 2,400.

“We think that in 2018 there will be more forks than in 2017. Ultimately, we believe that these forks will have a short-term positive impact on bitcoin, and in the long run will prevent it, “said Graham of Canaccord.

Bitcoin is still experiencing many problems, including high  commissions  for 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.

“Bitcoin has such a wonderful network effect that I do not see any alcoin that would be more convenient for payments” or some other function, Sokolin said.

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.

“I really think that this year there will be an IPO of companies related to the crypto-currency market and more widely – the blockbuster,” Graham said.

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.

“First, IPOs will take place outside the US,” said Ryan Gilbert, a partner with Propel VC, which owns $ 250 million and focuses on financial technology.

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.

The post Forecasts: What will happen to the market in this year’s currency appeared first on Digital Bodha.



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