Cryptocurrencies have had arguably the most exciting history among all digital asset classes, and produced truly unparalleled opportunities along the way. However, a successful past does not necessarily guarantee a great future. In this article, we’ll take a look at where the crypto market headed, and explain all the factors that could potentially lead to its growth.
In the early days of crypto assets, the market conditions were completely different compared to today’s environment. Only a handful of tech-savvy individuals knew about these novel assets, and even they questioned their viability, longevity, and valuation..Crypto prices were heavily influenced by early adopters who continued to push investments until Bitcoin (BTC) reached $1.
From that moment, the influence started to shift from the first investors to a broader group of curious investors who learned about Bitcoin and cryptocurrencies for the first time through mainstream media. As years went by, this circle of interest grew, and safe supporters grew to a respectable following, they now form the core of all crypto investors today.
The crypto market is an ever-changing industry with multiple shifts in trends, beliefs, and even fundamentals. For that reason, it’s no surprise to see existing crypto investors themselves adopting and shaping to accommodate the new conditions.
However, what we need to talk about now is the average crypto investor’s profile, which reflects the majority of players within the space. Interestingly, the greatest percentage of nowadays’ crypto investors is made up of everyday people who are not particularly tech-savvy, but believe in the concepts and solutions offered by cryptocurrencies. They form a strong group, and their contribution is invaluable to the crypto market’s future growth
As influential as retail investors are, they will not be the most important players when it comes to the long-term future of the crypto market. That honor goes to institutional investors, who are getting into the crypto space with careful, small steps.
However, once the floodgates open, it’s possible that these players, such as hedge funds, mutual funds, or even investment banks, will pour immense capital into the crypto market. This will not only affect prices short-term, but also provide a solid foundation on the long run, as such institutional investments tend to have significantly longer cycles than those coming from individuals.
t’s clear that there will be two typesof investors who will prove to be influential in terms of adoption and prices. Retail investors will provide the necessary environment for cryptocurrencies’ everyday adoption, which will not only push regulators to vote in favor of these novel digital assets, but also have an effect on institutional players' allocation of funds to the market. In any case, while the future could be different to the one described above, one thing is certain: there are exciting times ahead for crypto assets.
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