With the cryptocurrency market increasing to a record-breaking number, investors say one of the reasons is thanks to Bitcoin taking a market share from other cryptocurrency competitors. The market continues to grow even though it’s incredibly volatile, investors believe that the potential gain is still worth the risk in this speculated market.
Recently Bitcoin passed the $5,000 mark and ever since we’re starting to see Wall Street banks joining this cryptocurrency investing opportunity. This has also proven CEO of JP Morgan, Jamie Dimon’s statement incorrect. In September 2017 Jamie Dimon called Bitcoin a “fraud”. With the whole of Wall Street jumping on the Bitcoin train, it appears that Bitcoin and other cryptocurrencies are not fake or some type of scam but are the way to a better financial tomorrow.
The cryptocurrency value increase has more than doubled the demand for Bitcoin from banks and investors. Although the demand is through the roof, analysts continue to work around the clock to gather investor information to keep up with the Bitcoin supply.
According to cryptocurrency tracker CoinMarketCap.com, the amount of money in cryptocurrencies was at around $20 billion in the beginning of 2017 and now it has increased to $100 billion. As no investor or company has expected this increase, sceptics say that it’s impossible to know what the future holds for Bitcoin.
Cryptocurrencies are the reason for all of the Wall Street fuss currently headlining the economic news as investors are torn as to what to believe. The market growth has given cryptocurrency analysts enough evidence to state that currencies are here to stay and has a 100 percent certainty of being the currency of the future. Thanks to this market high the government of Japan has even declared Bitcoin legal.
But from the lack of regulations and the market becoming more volatile every day, a great number of investors and other analysts are predicting a collapse in the market and also giving warning of a potential recession to hit the financial world.
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Even with the cryptocurrency market facing threats of being called a potential reason for a market crash or recession, it seems that no warning is having an impact on the increasing number investors. Swiss bank analysts provided a report to the economic community informing them why Bitcoin will not fail. The report also states that by 2027 the global economic value could be increased by nearly $400 billion due to the increasing banks climbing aboard the cryptocurrency trade.
This increase in the cryptocurrency market is also the cause of new hedge funds popping up. Since hedge funds can’t as easily change their route of investment it seems much easier to start a brand new hedge fund and make its investments linked to cryptocurrency. Manager at Arthur Bell, Corey McLaughlin who’s been in the hedge fund industry for 19 years even said that this cryptocurrency market increase is insane.
Every company, investor or financial organization who can stand even a slight chance to profit from cryptocurrency trade and investing is doing anything possible to join the market, and this is causing a flood in the cryptocurrency market, leaving cryptocurrency trade such as Bitcoin unpredictable like nothing before.