This week, many Wall Street bankers and financial employees will receive their year-end bonuses based on company performance in 2017. One digital currency analytics firm believes these bankers could purchase huge amounts of cryptocurrencies with their newfound cash. A domino effect of this buying spree could be price spikes for virtual currencies like bitcoin, ethereum and others.
'Get Ready For An Explosion'
Digital Currency Group director Meltem Demirors believes bankers will buy up cryptocurrency in record amounts as they finalize their bonuses, according to a report by Bitcoinist.
Demirors said she expects a massive influx of cash into the growing digital currency space, primarily based on traditional investors with "cash a plenty to put into crypto." She warned, "Get ready for an explosion."
This prediction comes just days after cryptocurrency markets were down in many areas. Ripple, which exhibited outsized growth in the final days of 2017, has dropped somewhat in the early weeks of the new year, and a number of other spikes in altcoins have similarly fizzled. (See more: How Did Ripple's Price Perform in 2017?) Perhaps the relatively reduced rate could impact the buying spree as well.
Buying Spree's Impact on Price
What would be the implications of a "crypto buying spree of epic proportions," as Demirors predicted in a tweet on January 4th? One immediate repercussion would be a potential increase in prices across the board. (See also: Why Wall Street Is A Key Player In The World's Economy.) With a surge in demand and a motivated buyer group with plenty of cash on hand, it's likely that some of the most popular digital currencies would see quick gains in value in response to a buying spree of this type.
What is more difficult to predict, of course, is exactly which digital currencies would see the most attention. Certainly, it's a safe bet that major currencies like bitcoin and ethereum would be attractive options for a new group of buyers. However, there are dozens of new cryptocurrencies emerging every month. (See also: What Is Cardano? An Introduction to the Bitcoin Cousin.)
It's also foreseeable that a buying spree could drive up prices in a lesser-known or even previously-unheard-of digital currency that suddenly becomes popular. After all, this has happened before. (See also: Dogecoin Market Cap Hits $2 Billion: Launched as 'Joke Currency.')
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