Investment bank predicts collapse of crypto-markets over the next 12 months

thepioneer (50)in #crypto-markets • 7 years ago

For GP Bullhound investment bank, the price of Bitcoin and other cryptocurrencies could fall by 90% over the next 12 months. She predicts, however, that this " crypto-winter " should give way to an unprecedented surge of the few " surviving " currencies. At the same time, many renowned investors remain optimistic.

A rise, a collapse, ... then an outbreak

Financial markets Sebastian Markowsky , the lead author of this study entitled "Token Frenzy: The Fuel of the Blockchain", predicts the imminent arrival of institutional investors on crypto-markets . This is expected to inflate the prices of these assets, while encouraging many savers to buy digital currencies, despite high prices.

Later in the year, a wave of panic would blow on the crypto-currencies, with a collapse of 90% of the market valuation over the next 12 months . The analyst expects, however, that some " surviving " digital assets will manage to escape unscathed from this " massive destruction of the market ":

"Once the crypto-winter is over, the growth dynamics for the few precious survivors will be unprecedented," he wrote.

ICOs: " The bar will climb very quickly "

ICO Fundraising Despite his pessimistic view of the ecosystem, Markowksy believes that Initial Coin Offerings (ICOs) should continue to flourish . These had managed to raise more than $ 4 billion in 2017 - significant sums for a sector as young as that of cryptocurrencies.

The author of the study, however, believes that the proliferation of "exit-scams" should lead investors to be more cautious . More and more of them should look for concrete evidence of the viability of the projects that will be presented to them.

"Raising money through a simple white paper will no longer be possible," Markowsky told CNBC. "I think investors will need to have a preview of the product, the bar will go up very quickly."

Many observers remain enthusiastic

Bet Bitcoin Rising Despite GP Bullhound's near-apocalyptic predictions, many observers remain enthusiastic about the future of crypto-currencies .

This is particularly the case of Jack Dorsey , the founder of Twitter, who said last March that Bitcoin could, within ten years, take the place of the dollar as the first currency in the world .

This is also the opinion of Charlie Hayter , the CEO of the CryptoCompare website. Here is what he said on Wednesday at CNBC :

"We are going to see four factors: regulation, the increasing interconnection of markets, the increase in the number of financial instruments, and the arrival of institutional investors.These factors will give the tempo, while providing a framework. more efficient [...] If the sector can be resilient in terms of infrastructure, it is always subject to the participants' capricious feelings. "

We can also quote the investor Tim Draper , who reaffirmed a few weeks ago, in the context of the Blockchain Party 2018, its target price for the BTC : $ 250,000 in 2022 .

"I think we'll reach $ 250,000 per Bitcoin by 2022," Draper said, "and you can believe it, they'll think you're crazy, but trust, it'll be amazing when it happens!"