Bitcoin price (BTC/USD) will reach its previous highs this year, says CoinShares chairman

But it needs better structures to do so

Bitcoin price (BTC/USD) will reach its previous highs this year, says CoinShares chairman

The Bitcoin price (BTC/USD) will see a major rally in 2018, according to CoinShares chairman Danny Master.

During an appearance on CNBC’s TV programme “Fast Money” yesterday, Master predicted that this year the original cryptocurrency would reach its previous heights. However, in order for this to happen, cryptocurrency “structure” would have to improve, he said.

"We need to see this [cryptocurrency] structure continue to build," Master said, as quoted by CNBC. “We need to see the custody solutions come and be provided. We need indices and we need performance measures where we can actually start to understand what we're talking about and measure our performance.”

Initial coin offerings (ICOs), the controversial fundraising mechanism that allows companies and individuals issue and sell their own crypto tokens, also need to improve, he said.

"We need to do more mature work around the ICOs, so that post ICO we have a token life cycle," Master said. "And just give investors more clarity, better expectations, more transparency."

Master pointed out that the cryptocurrency space is “nowhere near” to the stage where it has enough of these tools to attract institutional investors.

“[T]hese things — indexation, custody and so on — aren't there to bring in those bigger people just yet,” he told CNBC.

Some industry players have already taken steps in that direction. Earlier this week, the largest US crypto exchange Coinbase launched its Custody service as part of a suite of products aimed at institutional investors.

Also this week, US derivatives marketplace operator CME Group and British digital asset trading service Crypto Facilities launched an Ethereum (ETH) reference rate and a real-time Ethereum-dollar index. The move came just a few days after Bloomberg announced that it was teaming up with billionaire investor Mike Novogratz to launch a cryptocurrency index, designed to “track the performance of the largest, most liquid portion of the cryptocurrency market”.

In today’s trading, the Bitcoin price stood at $8,305.30, as of 09:29 BST. The cryptocurrency has gained 0.6% in the past 24 hours, according to data from Coinmarketcap.

For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.

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