Based on the current market activity, cryptocurrency may expect a significant increase in price in the nearest future; however, investors are advised to act cautiously.
One of these investors is Nigel Green, the founder and CEO of deVere Group, one of the world's largest independent financial organizations. He grounds his statements on the latest events in the cryptocurrency market.
Green, whose company has developed deVere Crypto, cryptocurrency exchange app, claims the most digital currency have grown in price in the last few weeks.
"The price race which has begun in the last days has several reasons. One of the key grounds is attention to the cryptocurrencies from major banks and other financial institutions," he says.
Green adds that about 20% of all leading financial companies in the world, ranging from hedge funds to large banks, are now considering the possibility of digital currencies trade. This is proved by the latest survey of Thomson Reuters.
Another important reason for price hike is growing awareness of the importance of global digital cryptocurrencies in the modern world
"The upward trend is also caused by regulation, which is inevitable, according to most experts. And this will give investors even greater protection and long-term confidence in the market," the head of deVere Group says.
A statement of Department of charges and taxes of South Africa (SARS) which was published last month claims the great attention and speculation about the future of cryptocurrencies prompted the tax authorities to explain their interpretation of intangible assets. After this announcement, SARS hopes to see transactions with digital currencies in the declarations of taxpayers.
Mass media attention is mainly focused on Bitcoin, however CEO of deVere believes Ethereum can reach $2500 by the end of the year.
Green noted that the weekly increase in Bitcoin price by 11.3% was impressive, but the other major cryptocurrencies have shown even better results than the current leader by market cap.
On the other hand, the future rise in price of Ethereum can be explained with three main reasons, as the head of deVere says:
- Firstly, it's growing amount of platforms selling Ether.
- Secondly, the application of smart contracts of Ethereum increases.
- The third reason is decentralization of cloud computing.
It is expected that Ethereum will strengthen its position as the second cryptocurrency of the world. Ethereum token has bright future.
"However, the market is still unstable, so you should be careful and take advice of professionals," Green says.