A Year Ahead: Caspian’s Managing Director On Crypto Trends For 2020
By Caspian Managing Director – Chris Jenkins
We’ve just entered a new year – and this time another decade. As one of the Managing Directors of Caspian, I’ve been reflecting on how the crypto market continues to mature and grow. While the ride has not always been smooth, the market has developed significantly over the past half-decade.
Here are some of the most important trends that I see driving the market in the year ahead.
1. Institutionalization is coming – but to a specific part of the market
2020 will start to bring widespread institutional adoption of crypto currencies. The most likely drivers of this trend will be endowments and pension funds making an allocation to bitcoin, although some select providers may look elsewhere. This will be a boon for providers of crypto algo solutions and block matching platforms as many institutions will gravitate to those types of platforms when buying and selling blocks of crypto.
2. Altcoins face their day of reckoning
We’re going to see mass extinctions in the alt coins market. The chickens are going to come home to roost for projects focused on token price manipulation and community hype rather than building viable tech with solid business and token economic models. At the same time we expect many projects with solid technology and real use cases to thrive. The resulting market may be more narrow, but we believe it will be ultimately stronger and more stable.
3. Experts continue to see opportunities
There are going to be continued trading opportunities for sophisticated players in the crypto derivatives space, especially as the number of crypto derivative exchanges and products continue to proliferate and volumes grow. Activity and developments in this space will continue to be a driving factor for price and volume levels in the spot markets.
Do you agree with these predictions? Have your own? Please get in touch to share what you expect to happen in the year ahead.