Bitcoin and other cryptocurrencies will collapse by 90% within the next 12 months, analysts predict, but those coins that survive this correction are expected to grow tremendously.

Investment bank GP Bullhound published a report on cryptocurrencies under the name "Token Frenzy: The Fuel of the Blockchain". According to bank's analysts, within the next 12 months, the cryptocurrency market will suffer from the strongest correction.

First, more institutional investors will come to the market, the prices of crypto assets will start to grow sharply, and investors will start to fix profits. This will entail an outflow of capital and a panic sellout. The market will crash by 90%, believes Sebastian Markowsky, a director at GP Bullhound.

"Nonetheless, once this 'crypto-winter' passes, the growth dynamics for the precious few survivors will be unprecedented," Markowsky wrote in his report.

Another analyst, Andrew Left, the activist short-seller behind Citron Research, advises investors to bet on bitcoin, not Ethereum.

"I think both are bubbles," he said of bitcoin and ether, but "if I were going to be wrong about one of these, it would be bitcoin."

"I'd rather short ether," he added.

On 7 May, US financial regulators, the US Commission on Futures Trading (CFTC) and the Securities and Exchange Commission (SEC), will hold a meeting at which they will discuss, whether Ethereum tokens should be classified as securities.