'Get ready for an explosion' in bitcoin as Wall Streeters spend their bonus checks

Photo: Scott Olson/Getty Images

  • Wall Streeters are getting their bonuses soon.
  • The director of the Digital Currency Group predicts a bitcoin “buying frenzy” when the bonuses hit.

Many market observers expect the crypto markets will have sharp spikes up and down this year compared to 2017.

A few weeks ago the bitcoin traded at more than $US20,000, and at the end of 2017 the price dropped to around $US11,000. This was followed by a rebound again, with bitcoin hitting about $16,500 on Saturday before falling back to its current level of around $US14,300.

Meltem Demirors, director of the Digital Currency Group — an investment company which invests in currencies and crypto blockchain businesses — believes renewed momentum is on its way as Wall Street bonus season hits.

“When Wall Street bonuses hit bank accounts on January 15, I imagine we’ll see a crypto buying spree of epic proportions,” Demirors wrote on Twitter earlier this year.

‘Get ready for an explosion’

The traditional start of the year is a time when Wall Street traders can exert influence with their bonus payments, as many traders gamble with their extra income.

Mid-January bonuses likely clocked in at approximately $138,000, as can be deduced from calculations of the New York State Comptroller Thomas DiNapoli.

Two decades ago, The New York Times wrote about about car salesmen in New York who significantly benefited from bonuses on Wall Street.

“They are young, aggressive people who are able to make decisions spontaneously,” the newspaper quoted a car salesman saying at the time. “They come to see what’s in inventory, and when they receive their bonus checks — bingo.”

In 2018, the crypto market could get a boost from Wall Street bonuses.

“Young people have been watching from sidelines putting in a few thousand here, a few hundred there,” Demirors told Business Insider Deutschland. “Bonus season and tax rebates means cash a plenty to put into crypto.”

“Get ready for an explosion.”

This article originally appeared in Business Insider Deutschland.

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Read the original article on Business Insider Deutschland. This post originally appeared on Business Insider Deutschland and has been translated from German. Copyright 2018. Follow Business Insider Deutschland on Twitter.

SEE ALSO: A 39-year-old who sold everything he owned in exchange for bitcoin now lives on a campsite waiting for the ultimate cryptoboom

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