It is projected that about 90% of cryptos will be wiped out of the market soon. This is according to Xapo head Ted Rodgers. Rodgers further predicts that a recession might hit the global economy soon. He notes that crypto lovers will have a chance to buy bitcoin at discounted prices.
His sentiments coincided with the Tuesday crypto market sell-off. The entire market capped at under $200. Tuesday’s development was backed by altcoins. Since January 2018, cryptos have been falling with major coins recording all-time lows.
However, bitcoin has remained dominant despite the decline. The month of August saw bitcoin control over 50% of cryptocurrencies. Ethereum’s decline has been identified as the propeller behind bitcoin's dominance.
Cryptocurrency researcher and expert, Nic Carter have revealed that bitcoin rose above the OTC gold in regards to settlement capacity. This year, gold is projected to be capped at $446b. The projections were revealed by the LBMA. Additionally, information provided by Coin Metrics indicates that bitcoin has so far released about $848 million. By December, bitcoin is set to surpass the $1.38 billion level.
“I’m conservatively estimating the London OTC market for gold, overseen by the LBMA, at 70% of global volumes. They publish clearing statistics. With these I can estimate the total net volume of regulated gold settlement at $446b for 2018 (based on 6 months of data). Conservatively, (adjusted estimates), Bitcoin has settled $848b this year, and is on track to settle $1.38T. Bitcoin, it appears, has quietly surpassed the OTC gold market in settlement volumes.”
Many people are now considering bitcoin as a value. The changing fortunes are being propelled by bitcoin’s volumes that is taking over the traditional financial market. Analysts argue that bitcoin is superior compared to gold.
In 2017, Nikolaos Panigirtzoglou from JPMorgan pointed out that soon cryptos will establish as major assets. He notes that assets like gold may face stiff competition from cryptos.
Nikolaos added that bitcoin will bring liquidity to the market due to futures contracts and ETFs. He notes that there is potential in bitcoin futures making cryptos the new asset in demand.