Cryptocurrency boom has further to run, say professional investors

Professional investors believe the boom in cryptocurrency trading has further to run with nearly one in three expecting the level of trading to increase dramatically over the next 12 months, new global research from blockchain-based derivatives trading platform CloseCross shows.

The research among professional investors around the world responsible for around USD380 billion in assets under management found 57 per cent believe the level of cryptocurrency trading will continue to rise next year with 29 per cent expecting a significant rise and 28 per cent expecting a slight increase.

Market commentators are split on whether the cryptocurrency market is still in a bull run or heading for another so-called Crypto Winter bear run with prices tumbling. 

But just 21 per cent of professional investors including hedge funds, wealth managers, institutional investors, fund managers and IFAs believe trading levels will drop over the next year and only 4 per cent expect a dramatic drop.

Recent research** from the UK’s financial regulator the Financial Conduct Authority shows retail investors share the optimism about the future of the market – the number of people holding cryptocurrencies in the UK has increased to 2.3 million and over half (53 per cent) of crypto users have had a positive experience.

The research for CloseCross, which enables traders to generate profits through a simplified three clicks process of selecting an asset, predicting price-bracket(s), and committing funds to these predictions, for a variety of asset classes including crypto, forex pairings, stocks, indexes, and commodities shows investors are more positive about ether than bitcoin.

More than half (51 per cent) expect the value of Ethereum to increase over the next 12 months with 18 per cent forecasting a dramatic increase in its value while 46 per cent predict Bitcoin’s value to increase over the next year with 19 per cent expecting a dramatic increase. 

Around 36 per cent forecast Bitcoin’s will drop over the next year with 16 per cent predicting dramatic falls while 32 per cent believe Ethereum will see prices drop with 10 per cent forecasting dramatic decreases.

CloseCross  CEO, Vaibhav Kadikar, said: “The cryptocurrency market has gone through wild volatility this year, but professional investors still expect trading levels to increase over the next year although they inevitably have different views on the performance of individual currencies.

“At CloseCross we are seeing traders predicting price stability for Ethereum and Bitcoin indicating that the trading community does not seem to be worried about any downward price pressures and the bears are still not at play

“Our platform offers CloseCross Crowd Wisdom which provides real-time data on the views and investments of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.”

CloseCross is regulated under MIFID II rules offering increased protection and transparency for customers. Unlike other trading platforms, there are no participation fees for using CloseCross, and its patented multiparty model ensures that leverage is not needed to achieve potentially outsized returns. Money placed on incorrect predictions is lost, but you never lose more than what you put in as there is no leverage needed or possible on the platform. Users pay facilitation fees, only on their winning trades, giving them significant savings when compared to traditional trading platforms.   

The platform also provides real-time data on the predictions of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.