Crypto market set to significantly expand in 2019 due to institutional capital
2019 is set to be a year during which we’ll witness considerable expansion of the cryptocurrency market, predominantly driven by institutional investors being excited about enhanced regulatory clarity.
As the post-Christmas crypto rally continues, with the top 3 currencies, Bitcoin, Ethereum and XRP rising 4 per cent, 12 per cent, and 3 per cent, respectively at the end of last week, I believe the bearish sentiment we saw in Q4 last year is now behind us.
Indeed, it can be expected that the current upswing will remain, although as with any financial market, there will be peaks and troughs.
This year we’ll see the cryptocurrency market evolve considerably as the sector expands, mainly due to inflows of institutional investors.
Major businesses, financial institutions, governments and their agencies, prominent universities and household name investors will all bring their institutional capital and expertise to the cryptocurrency table in 2019.
Things have already been moving in this direction, but there is a mounting belief that institutional investors are getting ready to leave the bench this year and get involved.
One aspect that is likely going to fuel this increase in institutional investment is greater regulatory clarity.
It can be assumed that more global jurisdictions will join the likes of Malta, Hong Kong, Japan and Switzerland in becoming crypto-friendly, from a regulation and pro-business aspect.
I am of the opinion that, although Bitcoin will remain the dominant cryptocurrency this year, Ethereum and XRP will fundamentally drive the upswing in 2019, because of their unique traits and problem-solving characteristics.
Already, Ethereum’s smart contract capabilities are superlative. An increasing number of institutional investors will be making the most of this cryptocurrency’s traits in 2019. In addition, as soon as Ethereum can accept data in its smart contract protocols, its price will soar even further.
In regard to XRP, hundreds of financial institutions are working with it already around the world, which is a trend set to rocket throughout this year.
Furthermore, XRP is positioning itself to become a standout international facilitator of global remittances and inflows. Of course, this is a huge market in the expanding emerging economies.
I’m very much looking forward to witnessing 2019 being a year of rapid maturation for the crypto sector because of institutional investment and even more people becoming involved with the digital currency revolution via the deVere Crypto app – the world’s fastest crypto trading app!