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Despite the bearish trends for most parts of 2018, the crypto market seems to be on the rise. As per the market reports, the crypto market valuation will hit 1 trillion USD in 2019. The present combined market cap for all crypto-currencies is something like $417 billion. Prior to the last downturn, the market cap was $800 billion. So, if the combined market cap manages to pique by just 25 percent, the crypto market will witness a massive valuation of 1 trillion USD in near future.
Growing acceptance for crypto payments
One of the major reasons behind such surge is surely the increasing acceptance for crypto payments by businesses worldwide. One of the most significant industries that accept crypto payments is the casino industry. Take to gamespromo.codes to avail the discounts offered by esteemed online casinos. Additionally, other major industries like tech, travel, gourmet etc. have also started to accept crypto payments which has eventually hiked the market valuation of crypto-currencies.
As per Jesse Powell, the renowned CEO from leading crypto exchange Kraken, crypto coins are all set to witness an accelerated growth in near future. He is confident, digital coins will be able to rise up from the bearish market trends that had dominated the last year. As per his statements, an increasing numbers of businesses revolve around crypto-coins of late and the number is only going to rise over time. Improved interest would eventually catapult the crypto scene to the predicted 1 trillion USD mark as forecasted by the market experts.
Increasing interest from institutional investors
Institutional investors were in talks of entering the crypto market back in 2017 when the market reached its ATH (All-Time-High) with a whooping $800 billion valuation. But, the immediate market crash did much to dampen the spirits of the institutional investors. However, with the recent bullish trend in the crypto sector, these big-scale investors have again started showing interests, along with individual investors and retailers.
A major factor that had kept the institutional investors from investing in crypto-currencies is lack of trustworthy custodian solutions. But regulated crypto custody is no more a distant dream today.
Kyle Samani from Multicoin Capital noted that lack of proper infrastructure and absence of reliable custodian solutions had prevented most of the institutional investors from believing in asset classes. In his words:
“For most of the investors, custody stands as the ultimate barrier. But, by next year (read 2019) it will be a solved issue and that would pull in enormous capital wave to the crypto market.”
Leading platforms like Coinbase and BitGo have already been approved as reliable BTC custodians across the USA market. Additionally, esteemed banks such as Goldman Sachs, Morgan Stanley and Citigroup are prepping up to cater to clients in crypto scene. All these will consequently revive institutional investors’ faith in the crypto scene- resulting in sound investments from them.
As per billionaire investor Michael Novogratz, BTC prices will witness around 30% hike the moment institutional investors foray into the crypto market. Institutional investors are armed with more fiscal backup compared to individual investors. Thus, their entry into the crypto market will undoubtedly hike the crypto market valuation to a greater extent that what is possible through investments from individual investors.
The resilience quotient
Another huge factor that has been reviving faith in the crypto market is the resilient quotient of the industry. According to Balaji Srinivasan, the CTO of Coinbase, he had always been immensely hopeful of BTC & the overall crypto scene since the market survived the huge 2011 crash. It’s the crypto market’s very ability to pull itself up from dramatic declines is a major factor that has established its proliferating potential before the investors.
The crypto market’s rise to a bullish state in the final quarter of 2018 after a dominating bearish market has inspired hope and attention from a growing number of investors. Albeit some investors were affected by the bad 69% drop in BTC price yet the recent crypto market has managed to acquire good lot of positive news.
As mentioned previously, Morgan Stanley, Citigroup and Goldman Sachs have already started developing credible custodian solutions for the crypto scene. Additionally, leading financial institutions such as Nasdaq and Bakkt are also lending their support to the crypto sector.
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