Investment bank predicts collapse of crypto-markets over the next 12 months

For GP Bullhound investment bank, the price of Bitcoin and other cryptocurrencies could fall by 90% over the next 12 months. She predicts, however, that this " crypto-winter " should give way to an unprecedented surge of the few " surviving " currencies. At the same time, many renowned investors remain optimistic.

A rise, a collapse, ... then an outbreak

Financial markets Sebastian Markowsky , the lead author of this study entitled "Token Frenzy: The Fuel of the Blockchain", predicts the imminent arrival of institutional investors on crypto-markets . This is expected to inflate the prices of these assets, while encouraging many savers to buy digital currencies, despite high prices.

Later in the year, a wave of panic would blow on the crypto-currencies, with a collapse of 90% of the market valuation over the next 12 months . The analyst expects, however, that some " surviving " digital assets will manage to escape unscathed from this " massive destruction of the market ":

• "Once the crypto-winter is over, the growth dynamics for the few precious survivors will be unprecedented," he wrote.

ICOs: " The bar will climb very quickly "

ICO Fundraising Despite his pessimistic view of the ecosystem, Markowksy believes that Initial Coin Offerings (ICOs) should continue to flourish . These had managed to raise more than $ 4 billion in 2017 - significant sums for a sector as young as that of cryptocurrencies.

The author of the study, however, believes that the proliferation of "exit-scams" should lead investors to be more cautious . More and more of them should look for concrete evidence of the viability of the projects that will be presented to them.

• "Raising money through a simple white paper will no longer be possible," Markowsky told CNBC. "I think investors will need to have a preview of the product, the bar will go up very quickly."

Many observers remain enthusiastic

Bet Bitcoin Rising Despite GP Bullhound's near-apocalyptic predictions, many observers remain enthusiastic about the future of crypto-currencies .

This is particularly the case of Jack Dorsey , the founder of Twitter, who said last March that Bitcoin could, within ten years, take the place of the dollar as the first currency in the world .

This is also the opinion of Charlie Hayter , the CEO of the CryptoCompare website. Here is what he said on Wednesday at CNBC :

• "We are going to see four factors: regulation, the increasing interconnection of markets, the increase in the number of financial instruments, and the arrival of institutional investors.These factors will give the tempo, while providing a framework. more efficient [...] If the sector can be resilient in terms of infrastructure, it is always subject to the participants' capricious feelings. "

We can also quote the investor Tim Draper , who reaffirmed a few weeks ago, in the context of the Blockchain Party 2018, its target price for the BTC : $ 250,000 in 2022 .

• "I think we'll reach $ 250,000 per Bitcoin by 2022," Draper said, "and you can believe it, they'll think you're crazy, but trust, it'll be amazing when it happens!"

Finally, note that he is not the only one to have proposed an optimistic prediction for the price of the first digital asset:

References: NCC , CNBC