Thursday morning, cryptocurrencies rallied after weeks of high price momentum in the middle of growing enthusiasm for the blockchain-based digital market called NFT. It is known as non-fungible tokens. Besides that, there is ongoing institutional adoption helping to boost the market to new high levels.
The market for NFTs posted around $2.6 billion in sales this year, which seems to be almost 20 times more than $13.8 million for the same period last year. The CEO of $13 billion wealth advisory DeVere Group, Nigel Green, wrote in a Wednesday note that with rising interest from prominent investors such as Visa, demand would explode. He also acknowledged the risks of a decreasing market spinning with optimism. He said some of the NFTs on the market would have little additional value in a couple of years. At the same time, some of them will be worth a fortune.
Key Background
Besides the noise around NFTs, continuing institutional adoption and inflationary interests helped the cryptocurrency market regain its losses after regulation in China resulted in a nearly 55% crash in early May. The market seems down about 13% from its all-time high. However, it reached its heights of more than 45% last month. According to research from Nickel Digital, 50% of money managers think institutions will turn to cryptocurrency this year besides the fear of inflation, which is rising quickly in more than 12 years.
Chief Critics About the Cryptocurrencies Market
James Royal, a Bankrate analyst, said that a critical mistake is what new cryptocurrency investors always make. They try to look at the past and assume the same results for the future. He repeated that people should stop investing more than they can afford to lose. He pointed out some cryptocurrency enthusiasts rely on market optimism for price increases.
