Cryptocurrency values set to surge this year, according to experts.

Cryptocurrencies are set to surge in price this year, with the entire market value tipped to pass the trillion-dollar mark, according to leading cryptocurrency experts.

Digital assets will enjoy a bull run far more significant than last year following the recent severe correction over the last few weeks, industry insiders speaking to CNBC have predicted.

Bitcoin, in particular, has seen a massive drop in recent days, with values dropping below $6000 for the first time since mid-November.

On Wednesday, the market started to recover as investors saw the vast opportunity in buying the dip.

During the lowest part of the dip, the total cryptocurrency market was down by over $550 billion.

Industry insiders predict we are due to see another rally ahead.

All new highs for cryptocurrency prices

“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.

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 substantial 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 more significant.

Speaking to CNBC on Tuesday, Jamie Burke, CEO at Outlier Ventures, a venture capital firm that focuses on blockchain investments, said:

“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.”

‘Utility tokens’ to watch

Many commentators have noted that bitcoin and other cryptocurrencies have no fundamental value. But others have suggested that digital tokens like Ethereum, which can be used to build new blockchain applications, could have value in the future as the industry moves forward and develops.

Some companies like IOTA and NEO are trying to create blockchain platforms that developers can build on. These applications can be powered by IOTA or NEO tokens. The same is true of Ethereum. Mick Sherman, co-founder and CEO of Hercules Tech, a data science company focusing on blockchain and big data, said these are the digital coins that could see their prices appreciate the most this year.