In spite of the downtrend of the current crypto market, income produced by cryptocurrency exchanges can more than double in 2018, suggests new research from Sanford C. Bernstein & Co., an investment management firm. The analysts also state that with the build-up of institutional demand and the maturity of crypto-asset class, the traditional financial sector firms that include asset managers and custodians will enjoy new opportunities to enter the market. The growth in revenue could be accredited to the current crypto price strikes, with investors attempting to recover the losses as the market has leaped more than 60% from the beginning of the year.
BTC or Bitcoin had reached a record high of approximately $20,000 in December 2017, but it turned as low as $5,800 in 2018. Presently, Bitcoin is hovering somewhere between $6,000 and $6,500. Hence, on the foundations of the analysts’ findings, only the global cash equities business did surpass crypto trading. The study reports that in the previous year, Bitcoin managed to raise only $1.8 billion of crypto exchange fees. Different parties have anticipated retrieval for cryptocurrencies in the forthcoming months and years, though some have approached a more watchful stance. A study by Warwick Business School stated that the value of cryptocurrency is hugely driven by investors, instead of outside economic factors that impact traditional investment vehicles.
However, investor and economist Tuur Demeester predicted that there wouldn’t be any new highs for Bitcoin, except the downward or sideways movements. He also stated that during the past few months, it had witnessed many macro events which would turn out to be optimistic for Bitcoin including a spike in volatility, the North Korea debacle, and the Chinese stocks breaking down, among many. Nonetheless, these shocks could move the meter for Bitcoin. The costs of digital currencies are far from their crests in 2017; still, a record number of traders are making use of cryptocurrency trading software like Crypto Code. So, the market has developed a fascination to absorb the new 30-month rally that is capable of producing lower prices.
According to the cryptocurrency exchange Coinbase CEO, Brian Armstrong, the number of people involved in the cryptocurrency ecosystem is likely to grow from the present 40 million to one billion in the next five years. During an interview with TechCrunch, Armstrong predicted that the crypto ecosystem and digital currencies would develop significantly, recognizing the growth of commercial organizations that build their tokens. These tokens would function together with equity in the form of a substitute investment system.
Speaking on the matter of directive as one of the critical factors to implement his idea, Armstrong said that it still needs to be seen whether or not the majority of the tokens will get recognized as securities. According to him, Coinbase is capable of hosting many tokens within years and probably millions in the coming days. To turn into a fully-regulated broker-dealer, Coinbase gained securities dealer Keystone Capital Corp. besides Digital Wealth LLC, and Venovate Marketplae, Inc. This acquisition can aid an organization in non-crypto financial products subsequently. Coinbase announced that it will launch four more cryptocurrencies, so now; the British customers will be able to trade Ethereum Classic (ETC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC), besides the existing Bitcoin (BTC).