Analysts: Crypto Exchanges Could Produce Upwards of $4 Billion In 2018

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Recent news circulating the general cryptocurrency industry have left many afraid to allocate capital into investment opportunities. According to the Bernstein investment firm, however, revenue produced by crypto exchanges will increase more than 200% before the end of the year. As such, the firm believes that this market still holds major opportunities for investors and traders alike.

Revenue Produced By Crypto Trading Might Reach $4 Billion By The End Of 2018

The analysts at Sanford C. Bernstein & Co recently suggested that traders should not be too afraid of the cryptocurrency market. Since the start of 2018, we have seen Bitcoin’s value fall tremendously, which has scared many people off from trading cryptocurrencies.

According to the analysts, we have seen revenue produced by crypto trading reach $1.8 billion throughout the entirety of 2017. 

This year has not seen been kind to the cryptocurrency industry. The fact that Bitcoin’s value skyrocketed to over $19,000 last year December gave many people hope. However, since establishing all-time highs, Bitcoin experienced a rapid decline in price… or “suffered” as some like to put it. Soon after reaching $19,000, Bitcoin’s price first plummeted down to less than $15,500. And since then, the price has continued to decline from just above $10,000 to less than $7,000 today.

Even though these statistics seem dismal, the aforementioned investment research firm announced that crypto exchanges still prove to be a lucrative venture. In particular, they announced that, according to their expert analysts, the revenue pulled in by crypto exchanges could eclipse $4 billion before 2018 elapses.

The estimate that has been made was based on the transaction fees involved with cryptocurrency trades only, which means the actual value could even be much higher due to listing fees, and other fees incurred by exchanges. 

It was also reported that the only markets to hold a value higher than cryptocurrency trading at the moment was the global cash equity business market. 

What this all means is that Bitcoin trading still holds potential for individuals who want to take part in the opportunities presented by the cryptocurrency industry. The Bernstein analysts described the current market situation as being appropriate for institutional investors and large legacy market organizations, including JPMorgan Chase & Co, as “traditional” organizations should also take note of the opportunity that is presented to them via the cryptocurrency industry. 

Other Crypto Experts Weigh In

Bernstein wasn’t the only firm to weigh in on the potential that the crypto market still holds. Many other reports have surfaced in just a couple of weeks that suggests that Bitcoin has not been knocked out yet and that altcoins are also standing strong, even though a huge dip has been recently observed. 

The most recent suggestions would be in regards to the speculations about an upcoming bull run in the Bitcoin industry. One particular report explains that when we look at Bitcoin’s historical data, considering the fact that Bitcoin could be classified as an officially regulated market shows that the price of this asset could rise in the near future.

Tom Lee, an expert in Bitcoin and cryptocurrencies in general, also revealed that he holds to his claims that we will see the value of the crypto “major” player could reach $25,000 by the end of this year. 

Furthermore, more companies than ever before — including many who trade in physical locations — have adopted Bitcoin and other cryptocurrency payment gateways. Such examples of real-world adoption have allowed consumers to pay for products like an item online with the Bitcoin they hold in their crypto wallet. 

This week, a report from Sanford C. Bernstein & Co. revealed that the cryptocurrency trading revenue this year may still hold a surprise. The team found evidence to suggest that it may double in value and reach as much as $4 billion before the end of 2018. 

Amna El Tawil is an experienced journalist with a strong background in financial writing. She is a cryptocurrency enthusiast and has been writing about digital currencies since 2016. When not writing, Amna can probably be found in bed with a book cuddling with her beloved Siberian Husky.

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