It’s good news Friday as the crypto market reaches all time high
The market cap of all cryptocurrencies reached an all time high this week of circa USD 42b. Is that a big number? Well compared to the total of the World’s equity, debt and property markets...No, it’s nothing at all.
Why does size matter? Well at the moment cryptocurrencies are not widely considered to be an investible asset class and therefore the demand side is made up of individual traders and a number of specialist hedge funds.
Consider what happens when cryptocurrencies start to emerge as a more formal asset class. This will not happen in a big bang sort of way, there will be a number of important events that happen progressively at an increasing rate. The first such event in my view will be the approval (eventually and inevitably) by the SEC of a crypto backed ETF. I have written about this elsewhere on this blog.
Have a great Friday.