In spite of the current sell-off which the digital coins faced, the experts are still very positive about cryptocurrencies and they told CNBC that cryptocurrencies can rise higher than the previous year and could even go beyond a trillion-dollar mark in terms of value.
In past few days, Bitcoin has seen a violent set-back, going below $6,000 for the first time. On Wednesday, as the cryptocurrency market became stable, it was above $7,000. On Tuesday, the cryptocurrency market was ranging at the bottom at $550 wiping out its value. Though, the authorities are not concerned about this.
On Tuesday, Thomas Glucksmann, head of APAC business development at cryptocurrency exchange Gatecoin informed by an email to CNBC, that modern technological development, the acknowledgement which the cryptocurrency exchanges is gaining and the entry of the capital from the society, all this will help the cryptocurrency market to recover and raise its prices to great heights in the current year. He confirmed that by December, Bitcoin will rise as high as $50,000. The bitcoin’s Lightning Network will increase the speed of slow transaction in the cryptocurrency.
To overcome the current situation, one possibility can be to issue another cryptocurrency backed instrument listed on a major exchange. In a near future we will again have a cryptocurrency backed ETF (exchange-traded fund).
In the past year, both the CME and CBOE issued bitcoin future products for people to trade. Also Nasdaq CEO Adena Friedman in his interview told CNBC that the exchange will go on and study cryptocurrency futures.
The cryptocurrency investors Cameron and Tyler Winklevoss, the two brothers and the founder of Gemini Trust digital currency exchange, who had an ETF application rejected in the past year, said that there is no bitcoin exchange-trade fund on the market. An ETF is like a tracker that tracks the price of an asset and the people will not have to buy the digital currency to trade bitcoin on an exchange.
‘Crypto winter’ is coming
Last year cryptocurrency met with a sell-off after seeing a big price rise for almost all of its coins as we can say, ethereum went above 8,000 percent and bitcoin saw a rise of about 1,300 percent and ripple went above 32,000 percent. Some experts have a vision that this year the prices will rises even higher than this.
Jamie Burke, CEO at Outlier Ventures, which is a capital firm that focuses on blockchain investments, wrote in his email on Tuesday, to CNBC, that cryptocurrency market will rise to a level of trillion-dollar after February and the market will concentrate more on basic market rules.