The 2019 cryptocurrency market will see significant growth due to the backing of institutional investors, according to the CEO of a leading financial advisory organisation.
Nigel Green, founder and CEO of deVere Group, argues that the weak crypto market of 2018 is now behind us, pointing to the growth of several key cryptocurrencies, including Bitcoin and Ethereum, over the past few days.
“The bearish sentiment of the last quarter of 2018 is now, I believe, behind us,” he said.
“We can expect the current upswing to continue, albeit with peaks and troughs as in any financial market.
“2019 will be a year of accelerated maturation for the crypto sector due to institutional investment.”
Institutional investment to drive 2019 cryptocurrency market growth
For Green, 2019 is the year that the cryptocurrency market will be embraced by large-scale institutions.
“In 2019, the cryptocurrency market is set to radically evolve. We can expect considerable expansion of the sector largely due to inflows of institutional investors,” he said.
This will mean investment beyond the finance industry, with both companies and government organisations getting involved in cryptocurrency.
“Major corporations, financial institutions, governments and their agencies, prestigious universities, and household-name investing legends are all going to bring their institutional capital and institutional expertise to the crypto market.
“The direction of travel has already been on this path, but there is a growing sense that institutional investors are preparing to move off the sidelines in 2019.”
Regulations key to institutional support for 2019 cryptocurrency market
Key to this move is the increased level of regulatory support and protection offered to investors in cryptocurrencies compared to several years ago.
“The acceleration of institutional investment is likely to be driven by greater regulatory clarity,” he explained.
“More and more global jurisdictions can be expected to join the likes of Malta, Hong Kong, Japan and Switzerland in becoming crypto-friendly from a regulatory and pro-business viewpoint.