Fairly well predicted, cryptocurrency was expected to increase dramatically in 2018. According to Thomson Reuters, ‘one in five financial institutions will consider trading cryptocurrency in 2018.’ The expected mushroom growth and the butterfly multiplier effect hand-in-hand were to increase the popularity and desirability of cryptocurrency in mainstream finance players creating several upward waves and trends in crypto demand.
The survey was conducted on 400+ clients across all Thomas Reuters trading solutions. The findings suggested that approximately 20% of the participants indicating they are considering trading cryptocurrency over the next 3-12 months, including names like Eikon, REDI, and its FX platforms. The new waves of demand come from big guns in the global finance market.
Among those who indicated they would trade cryptocurrencies in 2018, approximately 70% said they were planning to do so over the next 3-6 months with an additional 22% planning to trade over the next 6-12 months.
On the subject, Neill Penney, co-head of Trading, Thomson Reuters said:
Cryptocurrency is still a relatively small part of the trading market, but this survey indicates this niche segment is starting to enter the mainstream of the financial services industry. This is a major change from a year ago,
Goldman Sachs’s recent announcement to start a Bitcoin operation soon is also a sign that the prediction is developing stronger colors in the real world. This will be a first Bitcoin trading operation at any Wall Street bank. This will add to the general acceptability of virtual currencies and their resourcefulness in more traditional finance markets. The move towards the adoption of crypto solution will be catalyzed by similar movements with such great symbolic as well as intrinsic value.
The virtual currency trading, though, will be available only to big institutional investors only. Goldman Sachs will extend services to smaller clients later on in the plan, as the bigger ones are in motion and being fairly satisfied with it’s services as first priority.
Among other current developments, Thomson Reuters also launched a new version of MarketPsych Indices (TRMI v3.0), which includes the ‘first sentiment data feed for Bitcoin in addition to new and/or enhanced market sentiment data for several asset classes, new user capabilities and coverage.’
The Bitcoin rise has been the hottest crypto topic in the last two months. According to Forbes, ‘Bitcoin is going to $14,000, bulls say.’ That too was the least ambitious guess. Tim Draper guesses it to go as high as $200,000 by 2022. Others in the market, like Forbes columnist and London’s ThinkMarkets strategist, Naeem Aslam, suggested $50,000 by December can happen.
And in similar crypto good news, San Francisco-based Bitwise Asset Management, wants to surf Direxion’s wake. They filed with the SEC on Tuesday, the WSJ reported.
However, hurdles remain in virtual currencies meeting such high expectations. According to crypto investor and Crypto Finance Group Board Member, Marc Bernegger, investors need reliable and steady data to support their decisions, the trading ties need to be secure and the sources need to be trusted and rather dependable if the market is to grow as expected.
This is where the Thomas Reuters formed strategic partnership with CryptoCompare will come in handy. The global cryptocurrency market data aggregator. ‘In addition to Thomson Reuters using sentiment data to track trading insights for the top 100 cryptocurrencies, CryptoCompare will integrate order book and trade data for 50 cryptocurrencies sourced from a wide variety of trusted exchanges into Thomson Reuters financial desktop platform, Eikon.’
This will provide users with reliable insights into the crypto asset market as a whole, enabling the prediction of price movements with a high degree of probability. This has the potential to spike up the demand lines to untouched peaks and unmarked regions at an unprecedented speed.
Other predictions include Sustany Capital (Newport Beach crypto and blockchain investment firm), conducted a survey of 1,000 U.S. adults regarding attitudes toward cryptocurrencies. The report takeaway is that 88% of Millennials said they will buy crypto because they think it is a ‘good investment.’ As the millennials grow older in wealth and status, the demand and acceptance of the currency will begin a new wave of demand and circulation.
As for the remaining months of 2018, time is running out for potential movers to invest on the hottest investment channels so far in trading history. All facts and researches support the move.