2017 saw a rush of capital into the cryptocurrency markets, and there’s no sign 2018 will be any different. And millennials are keeping the frenzy booming.
According to a recent survey conducted by Blockchain Capital, 30% of those in the 18-to-34-age range would rather invest $1,000 in Bitcoin than $1,000 in government bonds or stocks. The same study also indicates that 42% of millennials have heard about Bitcoin, compared with 15% awareness among those aged 65 and up.
The millennial interest in trading cryptocurrencies is hard to ignore, yet they are not the only ones interested in this market. The competition for the coin is expected to become tougher in 2018 as new players enter the domain.
It’s safe to say that this year, more institutional investors will start trading cryptocurrencies, especially Bitcoin. Yet, at the moment the bitcoin market already faces a significant supply and demand imbalance despite the high price.
According to Timothy Tam, an ex-hedge fund trader and co-founder of CoinFi, an advanced market intelligence platform for cryptocurrency traders, it looks like the existing equation might force prices even higher. “There’s limited supply because, aside the fact that there will only ever be 21 million Bitcoins in circulation, most of the holders of Bitcoin are long terms holders. The demand on the other hand keeps soaring,” he explained.