Cryptocurrency market could hit $1 trillion this year with bitcoin surging to $50,000, experts say

Cryptocurrencies could go on a bull run greater than last year and pass the trillion-dollar mark in terms of value, experts told CNBC, following a recent violent sell-off across digital coins.

Bitcoin has seen a huge fall in recent days, dropping below $6,000 for the first time since mid-November. On Wednesday, it was trading above the $7,000 level as the cryptocurrency market stabilized.

At its lowest point on Tuesday, the total cryptocurrency market saw over $550 billion wiped off its value. But industry insiders see another rally ahead.

"Increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market's rebound and push cryptocurrency prices to all new highs this year," Thomas Glucksmann, head of APAC business development at cryptocurrency exchange Gatecoin, told CNBC by email on Tuesday.

"There is no reason why we couldn't see bitcoin pushing $50,000 by December."

The technology advancements Glucksmann referenced include bitcoin's so-called Lightning Network, which would boost the very slow transaction speeds using the cryptocurrency.
"One possible appetizer for the bulls, or the catalyst for the recovery, will be the release of another cryptocurrency backed instrument listed on a major exchange. There are several candidates in the pipeline, it's only a matter of time until we have a cryptocurrency backed ETF (exchange-traded fund)."

Last year, the CME and CBOE both released bitcoin futures products that people could trade. And Nasdaq CEO Adena Friedman told CNBC in a recent interview that the exchange was "continuing to investigate" cryptocurrency futures.

There is still not a bitcoin ETF or exchange-traded fund on the market. An ETF tracks the price of an asset and would allow people to trade bitcoin without having to buy the digital currency on an exchange. Noted cryptocurrency investors Cameron and Tyler Winklevoss, the brothers who founded the Gemini Trust digital currency exchange, had an ETF application rejected last year.

'Crypto winter' is coming
The recent cryptocurrency sell-off came after huge price rises for many coins last year. Bitcoin was up nearly 1,300 percent, while ethereum rose over 8,000 percent and ripple surged over 32,000 percent.

Even though the price rises were massive, some experts think that this year could be even bigger.

"We believe after February the market will likely go on a bull run comparative if not greater than last year potentially reaching the trillion-dollar mark before a proper crypto winter sets in where the market becomes more focused on proper market fundamentals," Jamie Burke, CEO at Outlier Ventures, a venture capital firm that focuses on blockchain investments, told CNBC by email on Tuesday.