John McAfee believes the march of the cryptocurrency bulls is at hand. The renowned tech activist and internet security expert has added his voice to the growing crypto institutional investment narrative.
Prices Will Go Through the Roof
In a tweet on Monday, McAfee urged traders to gear up for the next crypto price rally. He based his assertions on the influx of cash from institutional investors trooping into the market.
He also said that with the money flowing into cryptocurrencies, prices of the top ten coins will increase dramatically. McAfee also believes that other altcoins will experience growth as investors diversify their cryptocurrency trading portfolios.
Institutional investors are preparing to enter the cryptocurrency market with a vengeance. They are generally long term investors and will be pumping billions into the market. Expect the top ten coins to go through the roof fairly quickly. The bulk of alt coins will soon follow.
— John McAfee (@officialmcafee) May 21, 2018
When challenged on Twitter as to the veracity of his claims, McAfee gave no basis for his declaration. Instead, the controversial crypto proponent told responders to “use their heads,” “check recent news on institutional investors,” and “apply reason.” Safe to say, this is another one of McAfee’s bold assertions, much like his famous 2017 prediction that “Bitcoin will be 500k in the year 2020.”
The Emerging Trend of Institutional Cryptocurrency Investment
While McAfee did not provide any backing for his claims, there is some merit to his position regarding the flurry of institutional interest in cryptos that have made the news in recent times. A few days ago, Coinbase launched four new products targeted at institutional cryptocurrency investors. Goldman Sachs is also making plans to open Bitcoin trading to large investors as well.
The overarching consensus is that the crypto market is maturing after a parabolic growth spurt in 2017 which saw prices hit record highs. Since the start of 2018, the market has declined in value, dropping 50 percent of its market cap in February. According to an April survey conducted by Fundstrat, 82 percent of institutional investor believe Bitcoin bottomed out when it fell below $6,000 in April.
The entry of hedge funds into the crypto market should increase the perceived level of legitimacy of cryptocurrencies. One important part of the emerging trend of institutional investment in digital currency is the establishment of trusted custodial services. In the past few months, there has been some progress on this front with a significant announcement by Nomura during the recently concluded Consensus conference in New York.
Do you agree with John McAfee’s assertions of an impending crypto price boom? Which altcoins do you think will dominate the market? Let us know your thoughts in the comment section below.
Images courtesy of Twitter/@officialmcafee, Flickr, and Shutterstock.