The cryptocurrency market capitalization is expected to hit $1 trillion this year. The total market cap is on a constant increase, in spite of some individual coins falling. Nonetheless, the market cap seems to increase every year.
According to Jesse Powell, the CEO of Kraken, we may witness massive rallies in the remaining months of the year. As such, most coins may see a recovery in their prices as well as new price records. Jesse added that this is due to the recently increased adoption of the cryptocurrency technology by many companies in different industries as well as the increased awareness of digital currencies.
The latest player to jump onto the cryptocurrency bandwagon was the hedge fund billionaire, Steve Cohen, who invested in a new hedge fund, the Autonomous Partners. This group invests in cryptocurrencies and blockchain-related companies. Institutional investors did not enter the market during the bulls. Instead, they waited patiently for the fall and began investing. As such, the market cap may hit $1 trillion this year.
Moreover, most coins have started to experience some gains. For instance, Stellar (XLM), the seventh largest digital currency increased by 7% in the last 24 hours. Additionally, Cardano (ADA), the 8th largest digital currency is one of the top ten cryptocurrencies that has undergone some major gains in the last few days. The coin’s price gained 3% in the last 24 hours and is currently trading at $0.1438.
Currently, the total market capitalization is about $417 billion, down from $800 on December 2017. As such, even if the increase is just at 25%, the total market cap will hit the valuation of $1 trillion. Some issues that have affected the market include price manipulations, hacking, and government regulations. However, if these issues are addressed early, the market cap may achieve these heights.
What other issues do you think have caused the current market conditions?
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