Some experts expect to see bitcoin hit $50,000 and the cryptocurrency market to hit and surpass a trillion dollars according to a report on CNBC.
New products will boost trading
The recent downturn in the market saw bitcoin lose about half of its value and the overall market decrease by over $500 billion at it’s lowest point on Tuesday. Still, market experts are predicting another rally ahead.
“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,”
Thomas Glucksmann, head of APAC business development at cryptocurrency exchange Gatecoin, told CNBC .
Last year saw the first Bitcoin futures products released by the CME and the CBOE that people could trade. This year we may very likely see crypto-futures listed on the Nasdaq which could change negative viewpoints of digital currencies across the board.
“One possible appetizer for the bulls … 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).”
Said Gluckman.
It seems only a matter of time until an ETF is realized. This would allow people to track the price of an asset and trade cryptocurrency without having to buy it on an exchange. Cameron and Tyler Winklevoss who founded Gemini Trust Digital Fund had an ETF application rejected last year.
The recent market correction came after huge gains for many cryptocurrencies last year. Some experts are expecting to see comparative if not greater price rises in the year to come.
“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,”
Jamie Burke, CEO at Outlier Ventures.
Utility tokens are the future
Market analysts are tagging tokens like IOTA and Neo that can be used to build new blockchains as the ones to watch in the future.
‘Utility tokens and assets with a working platform are more likely to appreciate in value this year.’
Mick Sherman, co-founder and CEO of Hercules Tech told CNBC.
The CEO also warned that there will be more bubbles to weather as the true value of many Blockchain projects are still years away