Bitcoin undoubtedly took a few huge losses these two weeks. The currency dropped below $6,000 for the very first time since November. This morning, Bitcoin surged up to $7,200 and is now trading at around $8,200, signalling an upcoming stability in the crypto market.
At its lowest, the crypto market saw a drop of $550 billion, which is a huge loss in terms of value and speed. That loss happened for fewer than 30 days. However, experts seem rather positive on the development of the market, despite these turmoils.
CNBC just reported the comments by Thomas Glucksmann, the head of APAC business development at cryptocurrency exchange Gatecoin, who communicated to CNBC through email:
“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 further added that Bitcoin could easily reach the $50,000 price point by December, 2018.
Right now, the biggest thing investors should consider is the constantly improving technology of Bitcoin. The technological upgrade called the Lightning Network is actually going to speed up Bitcoin’s transactions, essentially making it fast and acceptable for day-to-day transactions.
“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).”
Many investors believe that if a Bitcoin ETF comes to light, then the price of the “people’s currency” could easily hit $50,000.
That, in turn, can greatly boost the market cap of cryptocurrencies as a whole. Experts believe that with technological advancements and the increased interest towards cryptos, the market capitalization can become $1 trillion in as early as 2018.