A leading analyst and founding partner of Orichal Partners, Adrian Lai stated that in 2018, the crypto market will lead to a maturing stage. He estimates that it will significantly increase crypto trading volume, particularly among institutional investors. Lai referred to the exorbitant growth of the market- reaching an all-time high of $800bn by Jan 2018- as irrational, and he attributed its extreme volatility to a lack of regulatory oversight and institutional investment.
His forecast for the remainder of 2018 has a decidedly optimistic tone, and he stated that;
“Regulators are not banning the development of cryptocurrencies, but are trying to better regulate the market, which should help the industry mature (…) If the regulatory stance gets clearer, large funds will be more assured and willing to commit significant capital.”
This year has already seen a lot in the way of regulatory momentum in the cryptocurrency sphere, and the US Commodities Future Trading Commission and Security Exchange Commission held hearings in February that were solely dedicated to the regulation of cryptocurrency.
Multiple countries are currently debating and developing regulations pertaining to Blockchain, cryptocurrencies, ICOs, and cryptocurrency exchanges, as well as considering the tax implications of such technologies.
In January it was reported that the venture capital Blockchain Investment in 2018 is already well on the way to exceeding 2017’s figures with considerable investments such as $140m VC already raised from Goldman Sachs, Baidu, and CICC for Circle’s recent acquisition of leading cryptocurrency exchange, Poloniex.
This latest forecast brings not only hope but credibility as well, due to Lai’s position and his accurate predictions surrounding the behaviour of the market in the last quarter of 2017.