Why The Cryptocurrency Market Has Reached a replacement Record High
Why The Cryptocurrency Market Has Reached a replacement Record High
The total market capitalisation (market cap) of cryptocurrencies continues to grow, recently surpassing $170 billion and hit a recent, record high.
The total market cap of those digital assets rose to the maximum amount as $172.2 billion earlier nowadays, per CoinMarketCap.
This figure represents a over 850% increase from their worth of $17.7 billion at the beginning of this year.
Why will this innovative quality category still grow?
The crypto market is growing for many reasons, per analysts.
A steady offer of Initial Coin Offerings (ICOs), a rising variety of funds that trade cryptocurrencies and therefore the sustained interest of investors ar all contributive to the present trend.
[Ed note: investment in cryptocoins or tokens is very speculative and therefore the market is essentially unregulated. Anyone considering it ought to be ready to lose their entire investment.]
Strong ICO Activity
Companies raised near $1.3 billion through ICOs throughout the primary half this year, per figures provided by analysis firm Autonomous and rumored on by CNBC.
FinTech companies raised way more through ICOs throughout the primary half this year than they did through capital investment.
These innovative token sales ar decrease interest in additional ancient ways of raising capital and driving crypto markets higher, aforementioned Brad Chun, chief investment officer of hedge fund Shuttle Fund consultant. He said:
"The simple fundraising via associate degree ICO is drawing each entrepreneurs and investors faraway from less effective capital raising channels."
Funds coming into The Fray
Another issue that might be pushing cryptocurrency values higher is that the growing variety of hedge funds that specialise in these digital assets.
Currently, there ar over fifty hedge funds that specialise in these currencies, per knowledge provided by fintech analytics firm Autonomous NEXT and rumored on by Business business executive.
"As new funds complete their legal work and start buying crypto assets, the market can still [reach] new highs," aforementioned Arthur Hayes, co-founder and corporate executive of leveraged cryptocurrency mercantilism platform BitMEX.
Rising Adoption
Another issue that analysts mentioned was the growing acceptance of cryptocurrencies. This trend has helped the entire market cap of cryptocurrencies climb over 800% this year, per CoinMarketCap.
As investors flock to digital currencies, many of them - together with Litecoin and Monero - have reached record worth levels this year.
"The market is within the interior of a section shift upwards towards larger adoption," aforementioned Hayes. "This positive momentum can still attract new cash into the scheme."