John Mcaffe Says The Bull Rally is Near
Prices will go Through The Roof
In Twitter on Monday, McAfee urged traders to warm up for the next crypto price rally. He based his assertions on the influx of cash from institutional investors jumping into the market.
He also said that with the money flowing into cryptocurrencies, prices of the top 10 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.
When challenged on Twitter as to the veracity of his claims, McAfee gave no proofs for his declaration. Instead, the controversial crypto proponent told answers 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 or he will eat his ****.”
The Emerging Trend of Institutional Cryptocurrency Investment
While McAfee did not provide any reality for his claims, there is some merit to his position regarding the flurry of institutional interest in cryptocurrencies 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 arranging 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 around 50 % 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 USD in April.
The entry of hedge funds into the crypto market should boost 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 advances on this front with a significant announcement by Nomura during the recently concluded Consensus conference in New York.