“Bitcoin And Other Cryptocurrencies Are On The Verge Of A Breakout”
It goes without saying that the performance of Bitcoin (BTC), along with its altcoin brethren, have been lackluster, with the collective market valuation of all publicly-available crypto assets declining by a jaw-dropping 70% in the past nine months.
But even amidst this downtrend, adoption rates have surged, while the development and maturation of crypto-focused infrastructure have also seen their fair share of progress. Look no further than Wall Street’s recently renewed interest in this market, as prominent banks like Fidelity, Goldman Sachs, JP Morgan, and Citigroup have begun to allocate resources to the creation and development of cryptocurrency vehicles and services.
On the startup side, which this industry has become known for, things seem to be booming as well, as crypto platforms Binance and Coinbase for example, both recently announced plans to bolster their staff and expand their operations and product lineups.
Speaking at DELTA, a Maltese government-run crypto and blockchain-focused event, Nigel Green, a leader in this budding industry, explained that the future is bright for this market, contrary to the wanton skeptics. As reported by Verdict, Green, who currently holds a position as the CEO of the deVere Group, stated the following at the event:
Bitcoin and other cryptocurrencies are, I believe, on the verge of a true global breakout. This is largely due to ‘FOMO’, the fear of missing out. Adoption is increasing all the time.
The executive of the financial consultant service, which has taken a focus on cryptocurrencies and blockchain technology, went on to add that institutions, whether financial or retail-focused, have begun to involve themselves into this technology, as aforementioned. Green added that institutions have begun to “embrace this sector” due to fears of competition and loss of customers, as the public is becoming “increasingly eager to explore the opportunities themselves.”
While he doesn’t expect cryptocurrencies to see another non-linear bout of growth, like Bitcoin’s run from $1,000 to $20,000 in 2017, he explained that an upswing is in store for this market, as it is becoming widely accepted that cryptos will undoubtedly be the future of money and the financial system.
This sentiment regarding institutional interest mirrors what Mike Novogratz, the founder and CEO of Galaxy Digital, had to say during a recent CNBC Fast Money appearance. As reported by Ethereum World News previously, Novogratz, who is a former legacy market investor turned diehard cryptocurrency proponent, explained that institutions, like hedge funds and traditional banks, will likely enter this market en-masse in the near future.
Highlighting his reason behind this outlook, the wealthy investor, who has a lot of capital riding on crypto (specifically Ethereum), told CNBC’s Fast Money panel that startups and firms are beginning to establish the infrastructure required for the arrival of institutions. More specifically, Novogratz stated:
It’s also a bull market in institutions building the infrastructure needed for real money investors to start investing in this space… I think that in three to six months from now, there will be an ‘all clear’ sign for people — big institutions and pension [funds] — to start investing.
Keeping this factor in mind, the CEO pointed out that institutions may begin to FOMO into this market come January 2019, which may spark yet another round of exponential growth through the influx of billions, if not hundreds of billions of dollars (and maybe even trillions).
Photo by Andre Francois on Unsplash
