As I’m sure most of you have noticed, crypto-markets have remained fairly static these past few weeks. While this might be a positive sign indicating a maturing market, I know many are feeling nostalgic for the meteoric leaps in prices we saw last year.
Even though we encourage clients to view cryptocurrency as a longer-term investment, sometimes it’s nice to be reminded that many experts in the field see potential for massive growth in 2018 alone.
To that effect, investment firm Blackmore Group announced some predictions earlier this week. CEO Philip Nunn told finance mag Business Cloud on Thursday that his firm sees the price of bitcoin passing the $60,000 mark by the end of the year. He told the news outlet that he believes the flagship cryptocurrency will see both $6,000 and $60,000 this year.
Speaking at KPMG’s Tech Manchester, Nunn noted that “obviously we’re closer to the $6,000 point these days”, but that’s no cause for alarm. He blamed the price drop on “market volatility which we’re experiencing at the moment; I think that’s really apparent”, but says that he absolutely stands by the $60k prediction.
The CEO commented that the money currently tied to the crypto space is coming from the public right now and not institutional investors. This means we’re existing in an environment temporarily driven by “market sentiment”. A flood of bad news can panic the public and hurt prices, while good news can drive hype-based buying sprees.
Blackmore Group expects institutional money to pour in, but until that time the market remains small compared to say the stock market. Nunn also addressed another side effect of smaller markets: “manipulation”.
The core… like Bitcoin, Ethereum, Litecoin and Ripple are really solidified in the market. They’re the fabric of the industry.
Theories of “market manipulation” have been floating around for some time– you may have read about it. Put simply: in a market as comparatively small as cryptocurrency, a handful of individuals can have a disproportionate effect on price. But this is a temporary growing pain, experts say.
The good news is that The Department of Justice (DOJ) launched a criminal probe into market manipulation last month, a move that industry insiders are hailing as a “good thing.” that will ultimately contribute to the long-term health of the cryptocurrency market.
Capping off his interview, CEO Nunn warned against investing in newer, unestablished currencies. His advice is to stick with the major players. “Very few” new coins will survive he says. “What you have is the core market like Bitcoin, Ethereum, Litecoin and Ripple, to name a few, that are really solidified in the market. They’re the fabric of the industry.”