https://bitcoincraze.xyz/crypto-winter-looms-for-virtual-currencies-warns-london-based-investment-bank/-
Digital currencies are in the midst of a spring rebound. But don’t get too comfortable with the recent punch higher for the No. 1 digital currency, bitcoin, which saw it shed more than 40% of its value in the first quarter, warns researchers at one company.
London-based boutique investment bank GP Bullhound said that in the next 12-months, the cryptocurrency market is in for a “mass market wipe out” where they expect only a few major currencies to survive; a period that director and author of the report, Sebastian Markowsky describes as a “crypto-winter.”
Read: Here’s proof that this bitcoin crash is far from the worst the cryptocurrency has seen
‘Cryptocurrencies will experience a heavy correction of up to 90 percent in the next 12 months and very few companies will survive this correction’
Investors in blockchain, the underlying technology that cryptocurrencies rely on, will fare much better says Markowsky. He sees further upside in venture-capital funding and said the average funding for successful companies would exceed $20 million. Furthermore, he said 2018 will see the first corporate initial coin offering, or ICO, which has become a popular way of raising money via digital currencies.
Read: Opinion: This is all it would take for bitcoin to become a worthless cryptocurrency
One bright spot for digital currency investors is that if you do survive the pending disaster, there will be light at the end of the tunnel, says Markowsky.
“Nonetheless, once this ‘crypto-winter’ passes, the growth dynamics for the precious few survivors will be unprecedented.”
A single bitcoin
BTCUSD, +0.26%
is closing in on $10,000, more than 60% off its 2018 low.
Read: JPMorgan’s bitcoin bible: Crypto ‘unlikely to disappear’
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