Cryptocurrencies set for another surge in prices

Current market activity indicates that cryptocurrencies are set for “another considerable surge in price gains” in the near future, but investors are advised to exercise caution.

This forecast from Nigel Green, founder and CEO of the deVere Group – an independent financial services organisation, follows a recent strong showing in the cryptocurrency markets.

Green, whose firm launched the cryptocurrency exchange app, deVere Crypto, says that most major digital currencies have posted large gains over the last few weeks. “There are several key motivators fuelling the recent rally in prices. These include adoption and integration by major banks and other financial institutions.”

He adds that 20 percent of all financial firms, ranging from hedge funds to banking giants, are now considering trading digital currencies, based on insights gained from a new Thomson Reuters survey.

“Another key reason for the rally is that there’s a growing awareness for the need and demand of digital, global currencies in today’s world.”

“The upward trend is also being triggered by regulation, which most experts now believe is inevitable. This will give investors even more protection and long-term confidence in the market,” says Green.

In a statement released last month, the South African Revenue Service explained that increased attentiveness and speculation about the future of cryptocurrencies has prompted calls for the taxman to clarify that they are regarded as intangible assets, so SARS expects taxpayers to declare gains or losses.

The deVere CEO believes that, despite Bitcoin taking the headlines, Ethereum’s price could reach $2,500 by the end of the year.

He says it’s interesting to note that even with an impressive one week jump of 11.3 percent, Bitcoin – the world’s largest by market capitalisation – is the worst performer amongst the biggest cryptocurrencies.

Ethereum’s upswing, on the other hand, will be fuelled by three mains drivers, Green forecasts. “First, more and more platforms are using Ethereum as a means of trading. Second, the increased use of smart contracts by Ethereum. Thirdly, the decentralisation of cloud computing.”

“Ethereum can be expected to solidify its position as the second most valuable and used cryptocurrency token in the world. The consistency of the Ethereum token will appreciate well into the future,” he adds.

“The market remains volatile, however, so caution should be exercised and professional advice sought,” Green concludes.

Edited by Neo Sesinye
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