If you are interested in investments in Crypto then you need to have confidence in the future. The market has not moved basically for six months.
The total crypto market on Coinmarketcap.com flutters around the US$200bn in value. By the end of 2019, I predict it will be $2trillion.
The reason is simple.
Institutions. Financial organisations. Pension/Super funds. Hedge Funds. Banks. Insurance companies. Endowments. Family Offices. High Net worth Individuals.
They did not drive the first crypto boom. Retail traders, mainly Asian, did.
Why aren’t Institutions in crypto now?
- Liquidity. They need to have confidence buy and sell big amounts quickly. $10–100mil. This is too much for normal exchanges. Now OTC desks are there to support.
- Custodial Services. Many Institutions cannot hold the assets they own and must be help at a specialist organisation. They are now [finally] being put in place. Because of this issue and hassles of trading, Exchange Traded Funds [ETF] that hold crypto without requiring custodial services are trying to launch. They will be authorised soon.
- Hedging. To reduce risk or increase leverage are expected and are now in place.
- Regulations. They need the confidence in legality. This is in place.
The last thing they need in confidence that the market is going up. There is little downward pressure on prices so it would not take that much for the prices to burst through an upper trading ceiling and then other players including a flood of traders to drive it higher.
The Big News
The biggest news I think in months is that Fidelity has embraced crypto.This $7trillion brokerage and asset manager will eventually offer crypto through its platform. Retail and Institutional Investors.
Also TD Ameritrade, another massive broker in the USA, has announced its launching crypto for clients.
Broker FOMO. [Fear Of Missing Out panic]. The point is that soon they will use this as a marketing story to target client business. It means any other broker will need to. Eventually all brokers and asset managers will. Brokers panic competing with Fidelity and TD Ameritrade.
Jamie Dimon, CEO JP Morgans famously slammed crypto in mid 2017. The news on the street was that when the market boomed in late 2017, clients angry that JP Morgans didnt support crypto started to move their business thus Dimon sheepishly changed his tune.
Institutional FOMO. If all brokers are talking, institutions will invest to just ensure they are not considered idiots. No-one knows where it will go yet a small bet of 0.5% of funds is massive money to this market.
The talk about ‘institutions’ revolves around the USA market, the crappyest in the world with those idiots in the SEC. Remember crypto boomed because of Asia.
My guess is that Institutions in Asia will lead this as well. Internationally, the english speaking world will be fed with US-centric news yet in the Chinese speaking world, which is 10 times the size as US market, they will drive growth first. Koreans. Japanese. Not Singaporeans or Australians [as too conservative].
European institutions actually are more progressive. There is already a ETF in Sweden. Like Singapore they are too conservative outside of London. London? They have the muscle and balls to lead a crypto boom.
REMEMBER crypto is a global game. A drive from British Hedge Funds using tens of billions [which they have], would break upper limits and the price goes up globally. Before you know it, everyone is into it.
These big guys will only focus on the big liquid global coins. I bet that 96% of investment will be on a few key ones like Bitcoin, Ethereum and Litecoin. Some analysts question the credibility of Ripple and Bitcoin [for good reason] so they will benefit yet not as much.
4% on remaining coins. I doubt that 0.1% on coins below 25 largest. Very little on new coins ICOs initially as the big play action will be on the big guys.
Its easy to imagine Bitcoin at $50–75,000 when it hit $20k before. Thats $1–1.5trillion. Unless there is a tech revolution, Bitcoin is too slow and too expensive to be a payment coin yet its a brilliant digital gold with a potential value of $2–5trillion [ie $100–250,000].
In the last crypto boom Alt-coins made 60%+ of total value. In the first growth stage, it’ll be 40–50%. Just a few big coins dominating YET all coins will get a positive lift as traders push coins they hope will grow 10–100X. All buyers, few sellers = booming prices.
Buy crypto today. Buy Now. It could jump 100% in prices in a week easily.
Buy a ‘bundle’ of Bitcoin, Ethereum, Litecoin and a ‘hyper-growth’ coin that can growth 100X.
Hold till 2020.
Share this with your friends and family so at least you can say I told you so!