One of the most important ways that institutions interact with financial markets is through the exchange rate. LMAX Group offers e-commerce opportunities for institutions as well as cryptocurrency trading. CEO David Mercer spoke about his views on the future of cryptocurrencies in CNBC.
Mercer said Bitcoin hitting new highs is "inevitable" due to institutional investment, which outweighs selling pressures. He pointed out that around 900 bitcoins are mined every day, which is equivalent to between 60 and 70 million dollars, unlike the income to exchange-traded funds (ETFs), which reached almost 700 million dollars in a single day at the beginning of March. According to Mercer, this huge imbalance between supply and demand is driving up the price of Bitcoin.
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Furthermore, Mercer also talked about the upcoming Bitcoin halving, scheduled for mid-April. This would reduce the amount of Bitcoin mined per day by half, to around 450, which could further ease selling pressures and cause Bitcoin to continue rising. However, some, including Mercer, believe this is already priced into the market.
He also made a statement about the total size of the cryptocurrency market, saying that if "3% of the world's assets go into cryptocurrencies, it would be a $6 trillion asset class." For reference, the entire crypto market is estimated to be worth around $2.5 trillion.
โMost cryptocurrency prices should be expected to rise from here, and I think Ethereum and Solana will follow,โ Mercer said.
Looking beyond cryptocurrencies, Mercer sees tokenization as โthe fourth or fifth industrial revolutionโ and predicts that โthe token economy will be $20 trillion by 2030.โ He thinks tokenization is the true underlying benefit of cryptocurrencies, and sees Bitcoin simply as a โsignalโ and โproof of conceptโ for tokenization to take off, โwhich we will be lucky to experience and enjoy.โ
"Based purely on supply and demand...we should see the price of Bitcoin being a multiple of what it is today," Mercer said.
Although Mercer noted that he is not in the business of making predictions, he bases his idea that Bitcoin will rise on the assumption that it will continue to be allocated to standard investment portfolios. This could happen sooner than some expected; The largest pension fund, the Government of Japan Pension Investment Fund (GPIF), recently submitted an application to explore the feasibility of incorporating Bitcoin into its investment strategy.
In terms of the potential of Ethereum spot ETFs, Mercer said that "Bitcoin is the store of value... the gold of the cryptocurrency market. Ethereum is the utility. The oil of the cryptocurrency market." He predicted that the Ethereum ETF would happen and would be great for Ethereum and the decentralized economy.
Mercer discussed almost every pressing issue related to cryptocurrencies, referring each point to his bullish stance on the asset class. It will be interesting to see how his predictions play out, particularly his idea that cryptocurrencies could reach a total market size of $6 trillion.
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This article LMAX Group CEO Forecasts Bullish Trend โ Anticipates Rise in Crypto Prices, Citing Potential $6 Trillion Asset Class originally appeared on Benzinga.com
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