AQR Capital Management Expert: 10x Increase in Cryptocurrencies Still a Possibility
Financial Expert Says It Is Still Possible To See A 10x Increase In Cryptocurrencies
Cryptocurrencies grew in recent years at very fast rates. Their price increased thousands of percent in very short periods of time. However, a 1000x increase in the coming years remains far from reality.
However, Aaron Brown, former Head of Financial Market Research at AQR Capital Management, said that Bitcoin and cryptocurrencies could experience a 10x growth. In a recent interview with Bloomberg, he said that Bitcoin price decrease will not harm Bitcoin adoption.
He said that the S&P is an American stock market index that aggregates the 500 most important American companies and that Bitcoin has six times more volatility than the stocks in the S&P 500.
Several investors do not enter the cryptocurrency market because they do not feel comfortable with the current volatility. For example, he mentioned that Bitcoin fell from an inter-day high to an inter-day low lossing 16%.
Furthermore, he talked about the suspension of the two crypto ETNs Bitcoin Tracker One (CXBTC) and Ethereum Tracker One (CETHF). The U.S. Securities and Exchange Commission (SEC) decided to suspend these two investment tools due to ‘confusion amongst market participants.’
However, both ETNs were not closed, the were suspended for a period of ten days that could ultimately be extended for a longer period of time.
Finally, he talked about the comments given by Ethereum’s co-founder Vitalik Buterin about the cryptocurrency market. Some days ago, Buterin said that the market does not have another opportunity to increase 1,000 times anymore.
Brown explained that the 1,000x increase seen during 2017 was related to institutional and retail investors entering the cryptocurrency world, but a repeat would be quite impossible. He has also said that developers are working in order to make the space safer, faster and more efficient than now. According to him, this would help cryptocurrencies be adopted worldwide.
About it he explained:
“Obviously the chances of us seeing a 1000x growth is out of the question, but a 10x growth? Sure thing! The cryptocurrency market is here to stay and it is not long before the market expands and becomes part of our daily lives.”
At the moment of writing this article, most of the virtual currencies in the market are operating negatively. In the last days, the cryptocurrency market capitalization lost several billions of dollars.