Bullish Scenario: $5 Trillion Crypto Market Cap
- The future of and other digital assets looks very bright.
- New upgrades from dApps in the DeFi space are constantly attracting more revenue into cryptocurrencies.
- Coinbase on Nasdaq and a series of good events for Bitcoin are pushing up the market capitalization.
- Is a $5 trillion market cap possible? The market may get more bullish than we imagine.
Bullish investors are becoming more optimistic about the prices of digital assets. With the recent string of milestones happening in the crypto space, the future is brighter than ever for investments. This year, the market capitalization of Bitcoin alone went through the roof and rose to $1 trillion.
Altcoins have also recorded several successes, with Elon Musk-backed Dogecoin surging over 400% and crossing the $3,000 mark. Experts suggest that the market capitalization will reach a new high as more institutional investors become involved in digital assets.
The Possibility Is Increasing
Cryptocurrencies have struggled in the past for several reasons, including government bans on exchanges and a lack of acceptance by institutional investors. However, the struggles seem over as the crypto wave has hit every sector. This year, the market capitalization of cryptos went above $2 trillion.
Whether it will rise to $5 trillion is uncertain, but it is within the realms of possibility. Government-backed blockchain technology will increase investor confidence because there will be no more fears of the authorities over-regulating or banning cryptocurrencies. The Chinese government backing blockchain technology is a significant step in the right direction.
Coinbase listing on Nasdaq has led to major investors pouring in and raising its value to $86 billion, and Ripple’s proposed IPO has set the tone for more to follow in the sector. With institutional investors set to place funds on more areas of the crypto-verse, the market capitalization is going to the moon.
The possibility of the market capitalization hitting $5 trillion in a few years has become more feasible as traditional finance now wants a piece of the digital currency action. Big banks have now set the machinery in place to offer digital assets to their customers.
JP Morgan Chase (NYSE:), Goldman Sachs (NYSE:), and Morgan Stanley (NYSE:) have all announced that they would begin to hold Bitcoin for their clients. These big investors would open the gateway for more money in cryptocurrencies. Bullish investors’ fantasies of an increased market cap seem to be turning to reality.
On the Flipside
- The market capitalization hitting $5 trillion may not happen for a long time.
- One of the major arguments critics have sustained against the crypto industry is that its assets are highly volatile, and it will take time before things normalize.
- The recent surge in the value of digital assets may lead to a bearish run as seen in the past, and this may discourage investors.
Digital Assets Are The Future
The future is bright for digital assets as their acceptability is now on the rise. Blockchain technology is solving more problems with the creation of more decentralized applications that use smart contracts to execute trades. The utility of cryptocurrencies is on the rise with new developments such as NFTs and metaverses.
Millions of dollars are being spent on digital collectibles. A whopping $2 billion have been sent on NFTs in 2021, with much more to be spent in the future. Digital gaming platforms have seen Wall Street investors partner to develop metaverses that will further increase the market capitalization of cryptocurrencies.
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