The cryptocurrency market capitalization is expected to reach $1 Trillion USD for the first time this year, despite the current bear market.
The current total market capitalization according to coinmarketcap.com is around $270,000,000,000, 66% lower than the current all time high market valuation of $813,000,000,000. With less than $200 Billion left to rise before hitting $1 Trillion in January 2018, the high point for the bull run at the end of 2017, the markets began to fall.
The trend has continued so far into 2018, however experts predict that despite the current low point the total cryptocurrency market cap will indeed reach $1 Trillion in 2018, increasing by almost 4 times.
The last time the total market cap was this low was in November 2017, but an almost 400% increase is still expected this year!
Why will the market cap reach $1 Trillion?
As the awareness of cryptocurrencies increases, as well as awareness in the underlying technology, we’re beginning to see a shift in perception from the media and indeed governements.
Recently, the SEC have been pushed to evaluate cryptocurrencies by the United States Congress, claiming they’re “The future of money”
“This hearing will examine the extent to which the United States government should consider cryptocurrencies as money and the potential domestic and global uses for cryptocurrencies. The Subcommittee will evaluate the merits of any uses by central banks of cryptocurrencies, and discuss the future of both cryptocurrencies and physical cash.”
Read more about the congress statement that could mark the turning point in the crypto world!
The report highlights fundamental flaws in the current fiat monetary system, such as the increasing concern over spiralling inflation rates, security concerns and the growing level of national debt!
Cryptocurrencies are also now beccoming increasingly more avaialable to institutional money, with the launch on the new Coinbase Index fund which requires a minimum investment amount of $250,000 expected to become the Dow for cryptocurrencies!
The SEC are also now seeking public feedback on Bitcoin ETF’s (Exchange Traded Funds)! Many investors looking to minimise the risks associated with investing look to ETF’s in order to ensure their investments can be optimally secured, financially regulated and insured!
If the SEC were to approve a Bitcoin-backed ETF then it would offer a vehicle for institutional investors to invest as well as providing the security and confidence in a developing market. If the SEC were to approve Bitcoin ETF’s then it would also mean approved third parties were in charge of storing and securing funds, meaning insurance policies would be in place and a huge risk factor may be eliminated from the industry.
There are echo’s of the term ‘institutional money’ being passed around all the more recently, and as the governmental stance shifts to focus more on the potential benefits of cryptocurrency, the likely hood is becoming an ever increasing reality.
Former Goldman Sach’s Vice President recently gave a sound piece of advice recently, urging people to “stay calm, this is a long term investment”.
$1 Trillion market cap is possible for 2018
Christopher Matta explained that over the long term, a solid infrastructure will continue to be build with ETF’s, Options, security and the Custody piece will be figured out. He explained all of this will bring about the institutional money and is what will ultimately lead to a successful investment.
The scarcity of Bitcoin is still a huge selling point for Bitcoin and the bear market which has commenced throughout 2018, he explained that “If you’re bullish for the long term, $6,000 is a decent entry point.” Matta believes that the developments this year have been hugely positive and explained all of this will eventually lead to new money and institutional money is coming.