The Next Big Thing is Cryptocurrency Trading According to Berstein & Co

Will Cryptocurrency Trading Double in 2018?

According to a report by Sanford C. Berstein & Co. financial analysts, revenue from trading cryptocurrencies will most probably double by the end of 2018. The current volume stands at 2 billion dollars.

Such a statement may seem exaggerated considering how low the price of majority of the coins has dropped this year. However, the report titled ‘ Crypto Trading – the next big thing is here’ seems optimistic that the tides could change for the better for the cryptocurrency market.

Statistics show that trading in cryptocurrencies such as Bitcoin generated revenues in form transactional fees of up to 1.8 billion dollars. The only other financial asset that surpassed this amount is cash equities.

The analysts state that there’s increased demand for cryptocurrencies by institutions which creates numerous opportunities for the trade. Wall Street giants such as JP Morgan may have tested the waters when it comes to cryptocurrencies but the more traditional financial institutions are cautious about the technology.

Price Volatility

One of the greatest challenges that face cryptocurrencies is how volatile their prices are. The lack of consistent leverage is a serious challenge facing crypto trading. Since December 2017, the price of Bitcoin has plunged over 67% which is not usual in conventional trading. Such uncertainties has added to the reluctance of taking up cryptocurrencies.

Due to such volatility, the analysts observe that US exchanges such as Coinbase may gain a serious competitive advantage in the industry. That said, traditional firms shouldn’t be ruled out of getting into the cryptocurrency space. A lot of them are interested in the trade but are cautious about how to go about it. Most of them have set up research centres and hired experts to carry out analysis of the market.

At the moment, the cryptocurrencies are still in what is being referred to as ‘winter’ for crypto trading. The month of August has been especially brutal for the crypto community but enthusiasm for the technology hasn’t waned. Only time will tell how the trading landscape for crypto coins will shape up but with such thorough reports, the future seems bright.

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