Will The Crypto Markets Will Copy The Stock Market: Analysis

The analysts have long compared the crypto markets with the stock one and they ask themselves will the crypto markets copy the behavior of the stock market since the first one is seen as the young version of the second one. Let’s find out in the crypto news below.

The market capitalization, trading volume and participation all have room to grow. That said, cryptocurrencies are now worth more than $200 billion which is more than Jeff Bezos’s net worth of $112 billion. The stock market’s total value is reaching $67.5 trillion but they had a few hundred years of a head start so they cannot be really compared to the crypto markets.

The crypto market cap can even double or triple in size in the upcoming decade and can get even more robust as the traditional stock market in terms of the quality of investment opportunities. Bitcoin jump-started the crypto development about ten years ago and the speed of maturation is incredible. There are now more than 3,000 cryptocurrencies in circulation and involvement from some high-end companies including Fidelity, Facebook, and JPMorgan Chase. Investment in cryptocurrencies has become much easier now for the institutional players.

When cryptocurrencies first came to the digital space, some individuals had to take some time to research projects and to manage their own investments. This means that the importance of retaining control over the private keys had to be learned but also users had to learn how to use exchanges or purchase tokens during their ICO. The hedge fund managers didn’t engage in crypto without custodial options and there was also the regulatory uncertainty surrounding ICOs which was considered risky. The Days of ICOs are now over and the United States and other countries are creating frameworks for investments in digital assets.

Since crypto’s starting days, we saw the launch of more than 700 cryptocurrency funds that invest in different tokens on behalf of their clients. Bakkt for example recently launched its first bitcoin futures contracts and is now considering bitcoin options next. Gemini’s NY Based exchange launched a crypto custody service in September 2019 which allows the customers to check the balances. These developments show there is an ongoing explosion of crypto investment-related products that will meet the needs of the institutional players.
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That’s why the question of will the crypto markets copy the stock markets remain for professional investors who have the time to research assets and manage their portfolios and decide whether to invest directly in individual stocks.