One of the biggest ways that financial institutions interact with financial markets is through foreign exchange. LMAX Group not only offers cryptocurrency trading, but also electronic trading opportunities for institutions. CEO David Mercer shared his thoughts on the future of cryptocurrencies on CNBC.
Mercer said it is “inevitable” that Bitcoin will reach new highs as institutional investment outweighs selling pressure. He said about 900 bitcoins are being mined per day, compared to nearly $700 million a day in inflows into exchange-traded funds (ETFs) in early March. pointed out that it would reach $60 million to $70 million. According to Mercer, this huge imbalance in supply and demand is driving up the price of Bitcoin.
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Mercer also mentioned Bitcoin's halving, scheduled for mid-April. This will reduce the amount of Bitcoin mined per day by half to around 450, further reducing selling pressure and potentially allowing Bitcoin to continue rising. But some, including Mercer, believe this is already priced into the market.
He also made a statement about the total size of the crypto market, saying, “If 3% of global assets were transferred to cryptocurrencies, the asset class would be worth $6 trillion.” For reference, the value of the entire cryptocurrency market is estimated to be around $2.5 trillion.
“We should expect most crypto prices to rise north from here, and I think Ethereum and Solana will follow suit,” Mercer said.
Looking beyond cryptocurrencies, Mercer sees tokenization as the “fourth or fifth industrial revolution” and predicts that “the token economy will be $20 trillion by 2030.” ing. He believes that tokenization is the real fundamental benefit of cryptocurrencies, and that Bitcoin is only a “signpost” and “proof of concept” for tokenization to take off. We'll be lucky to get through it and enjoy it.”
“Purely based on supply and demand, the price of Bitcoin should be many times what it is today,” Mercer said.
Mercer said he's not in the business of making predictions, but the idea that Bitcoin will rise is based on the assumption that Bitcoin will continue to be allocated to standard investment portfolios. . This may happen sooner than some expect. Japan's largest pension fund, Japan's Government Pension Investment Fund (GPIF), recently submitted a request to consider the possibility of incorporating Bitcoin into its investment strategy.
Regarding the possibility of a spot Ethereum ETF, Mercer said, “Bitcoin is a store of value, it's the gold of the crypto market. Ethereum is the utility, it's the oil of the crypto market.” He predicted that an Ethereum ETF would become a reality and would be great for Ethereum and the decentralized economy.
Mercer discussed nearly every pressing issue regarding cryptocurrencies, and brought everything back to his bullish stance on the asset class. It will be interesting to see how his predictions develop, especially his idea that cryptocurrencies could reach a total market size of $6 trillion.
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This article: LMAX Group CEO predicts bullish trend: predicts crypto prices to soar, citing potential $6 trillion asset class
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