The value of cryptocurrencies could go beyond one trillion this year according to experts. Its expected bull run is due to the sell-off predominantly seen across various virtual coins. According to CEO of Outlier Ventures, Jamie Burke, the bull run could occur after the month of February. “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.” Outlier Ventures is a venture capital firm that emphasizes blockchain investments.
Thomas Glucksmann, the head of Gatecoin’s APAC business development, explained to CNBC the reasons why the digital currency market would likely rebound to a new high. “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.” He added, “There is no reason why we couldn’t see bitcoin pushing $50,000 by December.” The Lightning Network, a payment system that exists atop a blockchain, has the ability to increase the speed of slow transactions through the cryptocurrency. It is also the technological advancement Glucksmann may be referring to. He added, “One possible appetizer for the bulls, or the catalyst for the recovery, 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).”
Bitcoin saw a huge drop in its value when it was pegged below $6,000 in November last year. It is currently trading beyond $7,000 when the market stabilized. During the market’s lowest point, more than $500 billion of its value was essentially gone. Though some have declared that the fundamental value of cryptocurrencies is non-existent, a few commentators have declared that digital tokens can be utilized to create blockchain applications and therefore possess future value as the relatively young industry continues to develop.