Important Analyst Believes Cryptocurrency Market Could Reach $10 Trillion Dollars in 10-15 Years
Mich Steves, a recognized analyst at the global investment bank RBC Capital Markets, said that the cryptocurrency market could be worth $10 trillion dollars in over 15 years. He said that during an interview with CNBC’s Fast Money on September 5.
Back in January, he explained that the $10 trillion dollars’ estimation comes from ‘taking one-third of the roughly $30 trillion in assets held in offshore funds and gold,’ due to the fact that investors are now embracing virtual currencies as a store of value. He explained that in order to reach $10 trillion dollars we would have to wait between 10 to 15 years. And of course, the road will be bumpy, there will be several ups and downs.
His comments come right after Goldman Sachs dropped its plans to launch a cryptocurrency trading desk. Indeed, during the interview they asked whether the decision of the Wall Street bank to postpone the crypto trading desk would have an effect on institutional investors trying to enter the market.
About it he mentioned:
“So, I don’t think it is a big concern… All the institutional investors I speak with that have been involved for the last five years or so…they are still involved in the space… they still track it very closely. So, what I think Goldman is having a hard time with is they can’t really find a way to get Institutional investors to invest… so, specifically a competitor to Coinbase… So, they are already able to get trading flows on the retail side… What they are realizing now is probably the next step to get institutional money is waiting for a Bitcoin ETF to get approved.”
Additionally, he is still sure about the future of virtual currencies. He explained that the $10 trillion prediction for the market capitalization of virtual currencies is still valid.
Due to the decision taken by Goldman Sachs to suspend the crypto trading desk, the cryptocurrency market experienced a hard drop. Bitcoin (BTC) is now being traded 12% down in the last 24 hours. The same happened with all the top 100 cryptocurrencies with the exception of the stablecoins.
At the moment of writing, the cryptocurrency market capitalization is $200 billion dollars. At the beginning of the year it was close to $900 billion dollars.
Despite that, many analysts remain bullish about the future of the space.