Multicoin Capital’s Kyle Samani Spotlights Key Factors Likely To Grow Crypto Market’s Near Future
Let’s Take A Look At Some Of The Key Factors That Will Drive The Crypto Market In The Near Future
Unless you’ve been living under a rock for the past couple of years, its is no secret that 2018 was an extremely bearish year for the crypto market. To put things into perspective, we can see that over the course of the past 14 months or so, Bitcoin has lost a whopping 80% of its value (with many other altcoins such as ETH losing even more).
With that being said, Multicoin Capital’s Kyle Samani is still of the opinion that as per a number of technical indicators, 2018 was still — by and large— quite a good year for the digital asset market as a whole.
In an op-ed published by BI recently, Samani went on to say that a lot of the work that went into sparking the crypto boom of 2017 will now start to bear fruit by the second half of 2019.
Why Is Samani Still So Bullish?
First and foremost, Samani is of the opinion that with the introduction of a host of different custodial services, more and more institutional players (as well as high net-worth individuals) will continue to enter this burgeoning market sector.
In this regard, he brought to attention firms such as BitGo and Fidelity Investments who have introduced a number of institutional-grade custody solutions within the altcoin sector over the course of the past six months.
Secondly, Samani is also of the opinion that as we move deeper into 2019, prime brokerage services too will become an increasingly integral part of this space. On the subject, he brought up the example of Tagomi — an institutional grade trading platform that is looking to produce its very own liquidity pool while easing out slippage for large-scale block orders.
Lastly, in an interview with former Goldman Sachs executive Greg Tusar, he pointed that the crypto market still hasn’t seen a “single platform that has shepherded its clients from depositing fiat or deciding on an investment thesis”.
Not only that, but it is also currently extremely difficult for established institutions to allocate their capital resources for cryptocurrencies or even manage their digital assets in a streamlined manner. As a result of these limitations, such important players have not been able to enter the market at all — even in a small way.
Last but not least, it should be pointed out that Samani believes that in the future, regulated exchange venues will gain a lot of mainstream traction. In his opinion, entities such as Bakkt, CME, ErisX are primed to make a big splash within the alt-asset market in the coming few months.
“More capital will move into crypto, spreads will tighten, and volumes will grow. The pace of market development is compounding rapidly.”