Revenue from crypto exchanges could more than double this year, hitting as much as $4 billion, according to a new report.
Sanford C. Bernstein & Co. analysts drew the conclusions despite the relative collapse of digital asset prices across the board, reports Bloomberg, and based on transaction fees from the buying and selling of digital currencies.
Analysts wrote: “As the crypto-asset class seasons and institutional demand builds, there are a plethora of opportunities for traditional firms,” including custodian, asset management and market-making services.
Last year, the study reports that $1.8 billion of crypto exchange fees were raised by Bitcoin.
Various parties have predicted a recovery for cryptocurrencies in the coming months and years, while others have taken a more cautious stance.
According to a study by Warwick Business School, the value of cryptocurrency is largely driven by investors, rather than outside economic factors.
Those like economist and investor Tuur Demeester, however, have predicted that there will be no new highs for Bitcoin, but rather sideways or downwards moves.
“In the past few months we’ve [seen] a number of macro events that would appear to be bullish for Bitcoin as a safe haven: the North Korea debacle, a spike in volatility, Chinese stocks breaking down, etc. However, these shocks didn’t move the meter for Bitcoin,” he said.
“We think the market likely needs more time to absorb the recent 30 month rally, which could produce lower prices. We don’t foresee new all time highs in Bitcoin for 2018, and unless data starts suggesting differently, we are expecting mostly sideways or lower price action.”