The co-chief of a large Cryptocurrency investment firm predicts that the Crypto market values would rise 10 times in the next Bitcoin bullish run. He discussed this yesterday with Bloomberg Markets.
October 2018 | AtoZMarkets - Joey Krugs, the co-chief Investment officer at Pantera Capital believes that the Crypto market would soon start a new round of large bullish moves. Bitcoin price often drags the entire Crypto market along. With increased market scalability, it's believed another set of big upside moves would be seen. Joey, who spoke with Bloomberg markets yesterday, believes the next BTC rally would see the entire Crypto markets increase 10 times their current value. This means that the next BTC upsurge would see the Crypto market capitalization spike to $2 trillion.
Big Market Players are Joining the Crypto bandwagon
The news that Fidelity Investment and Intercontinental Exchange are entering into the Crypto market would have caused big surge at the speculative level. Looking at previous market bull runs, the inclusion of such big market players was a major catalyst resulting into big upsurge. Joey believes that such moves are not happening yet because the market is waiting on solid adoptions to trigger a bullish trend.
The Need for more scalability to boost market value
He emphasized on the need for increased scalability and liquidity in the Cryptocurrency networks. He likened the current Crypto blockchain development to the pre-dial Internet era. He proposed:
“If you look at the internet, it’s easy to say, ‘Well, you just create an app, get some users, and then you solve the scalability problems.’ But these are all markets, and so if you don’t have scalability, you don’t have market makers, and so you don’t have liquidity.”
There are certain technologies that are not yet in their prime states. Unless these technologies are fully developed, Krug believes the Crypto market would remain range-bound or even bottom further. He says that he expects some Crypto networks to achieve Visa/Mastercard scale within the next couple of years, though that does not necessarily mean that the bear market would last that long.
How long do you think the bears would last? Do you agree with Krug's submissions? Please submit your thoughts in the comment box below.