In the past few weeks, the Bitcoin buzz seems to have cooled while other crypto currencies have rallied to make the headlines. Investors and analysts in the space see more developments in the world of cryptos in the year that has just kicked off.
Here are the big five predictions for crypto currencies.
More institutions to get into crypto currencies
The crypto space is attracting more and more institutional investors. With the increased interest in getting exposure of the sector, the institutional-level investment products related to digital currency is expected to grow. The CME and Cboe bitcoin futures that launched in December is seen as the precursor for the ETFs. Many analysts are of the opinion that regulators will give the nod to bitcoin exchange-traded fund in the second-half of 2018, or in early 2019.
Read: Is Bitcoin a bubble?
There will be more regulation
The regulators across the globe have been vocal in warning investors about the potential risks of crypto trade. However, the regulators are expected to introduce a set of laws to regulate the sector. It is believed that the regulators will try to take control of the situation and prevent major price dislocation events.
It will be an extremely volatile year
The experts anticipate even wilder crypto waves this year. Chief investment officer of cryptocurrency investment firm BlockTower Capital Ari Paul believes Bitcoin will go as low as $4,000 and as high as $30,000 at some point in 2018.
Bitcoin will prevail, while others will grow
Bitcoin is not done yet done. It has stagnated to hover around $15,000 mark for quite some time now when smaller alt coins such as Ripple, Stellar and Tron have hit sky-high. However, the industry experts tip Bitcoin to remain the largest crypto currency by market capitalization for most of the year.
It is also believed that the digital currency would benefit from the increased interest in the “alt-coins.” Moreover, being the most established digital currency, it would remain in the back of the mind of investors getting into the cryptocurrency space.
There will be more forks from Bitcoin, envisage experts. However, the forks are believed to be a short-term tailwind to Bitcoin’s value.
Some of the smaller cryptocurrencies have seen a dramatic rise in the last several weeks, elevating the total market value of all alt coins to above $785 billion. A similar trend of smaller currencies growing is expected this year.
Stock investors can invest in a digital currency-related IPO
With the rise of digital currencies, many entities in the sector have seen a significant transition to become billion-dollar entities. Coinbase, one of the leading U.S. cryptocurrency marketplaces valued at $1.6 billion, has hinted of pursuing an initial public offering. There is an anticipation of such crypto-owned IPOs this year and more broadly blockchain IPOs.
Crypto Market Update
At the time of writing, the combined market cap of the crypto currencies is $785, with BTC dominance of 36.5 percent. Bitcoin, the largest crypto currency, has shown a positive trend in the past day of trading registering gains of over 10 percent to trade at $17,103.70.
The last 24 hours of trading have not been gainful for the second and third-placed Ripple and Ethereum, as both fell by more than 2 percent. Ripple is currently trading at $3.12, while the present value of Ether is $1,016.75.
Litecoin was the biggest gainer among the 10 most valuable crypto currencies with gains of more than 20 percent in the previous 24 hours.