Cryptocurrency Market is Reaching New High’s Everyday
Cryptocurrencies have been the hottest commodity in recent times with the total market capitalization of all cryptocurrencies continuing to grow exponentially. Recently, the market cap reached $170 billion which is a record high for the industry.
During the first week of September, the market cap rose to over $172.2 billion according to CoinMarketCap.
The value of all digital assets increased by a staggering 850% since the start of 2017. Many are pondering the question, why is this market growing so much?
There are several main reasons why the cryptocurrency market is growing at such a substantial rate.
The first of those reasons is the fact that there are currently many ICOs or Initial Coin Offerings that provide investors with the opportunity to get in early and often. This keeps investors interested in investing in new digital currencies.
Once the ICO’s are out, they usually do extremely well. Companies coming out with ICO’s have raised over $1.3 billion using the platform during only the first half of 2017 alone. Companies are finding that they can raise far more using digital currencies than other traditional means of getting capital.
Brad Chun, the chief investment officer of hedge fund Shuttle Fund Advisor stated that “the ease of fundraising via an ICO is drawing both entrepreneurs and investors away from less effective capital raising channels.”
One of the other reasons people are investing is the growing ease and availability to invest in hedge funds dedicated to digital assets. There are currently more than 50 hedge funds that are based in cryptocurrency investing. Arthur Hayes, the co-founder and CEO of leveraged cryptocurrency trading platform BitMEX stated that “as new funds complete their legal paperwork and begin purchasing crypto assets, the market will continue to reach new highs.”
With the ease of investing and high potential for returns, digital currency seems to have no idea of slowing down in the near future.