The New York-based equity research outfit Fundstrat Global Advisors has recently published its 2019 cryptocurrency outlook. Moreover, cryptocurrency supporters suffering from bear market fatigue will be pleased to hear that the report describes several improvements that could support higher prices.
Fundstrat expects 2019 to bring higher cryptocurrency prices
Specifically, the study was published on February 8th. Furthermore, Fundstrat’s co-founder Tom Lee – who is notoriously pro-cryptocurrency – commented on the report through the use of his personal Twitter account.
”We see 9 incremental improvements in the landscape that ultimately support higher prices,” Lee noted in his tweet. Nevertheless, the report starts off with a summary of 2018, which Fundstrat notes brought several market disappointments.
To name a few, the summary argues that regulatory uncertainty and setbacks, along with the abrupt end to the initial coin offering (ICO) hype, as well as overly energetic growth have offset some of the advances within the cryptocurrency sector.
Some of these achievements include cryptocurrency wallet growth, as well as the launch of the Lightning Network. The report argues that the adverse effects, however, undid most of the positive achievements in 2018 – comparing the year to ”morning after sobering”.
Even so, Fundstrat believes that 2019 might be the year when things start to change. Although the company notes that it is too early to begin predicting mass adoption, Fundstrat is nonetheless guiding that cryptocurrency prices will recover this year.
”Is 2019 the mainstream breakout? Nope. But that is not necessary for crypto prices to eventually bottom in 2019, and by the end of 2019, we expect prices to be staging a visible recovery.”
Weakened US dollar important driver for higher cryptocurrency prices
Moreover, the outlook also lists several reasons for the recovery of Bitcoin prices this year. Specifically, the report believes that the expected weakening of the US dollar will be a significant catalyst in driving Bitcoin prices higher.
In addition to this, Fundstrat expects the performance of emerging market equities to outpace that of US bonds and securities – subsequently paving the way for a cryptocurrency-friendly environment.
Furthermore, another potential price-lever is believed to be the rise of institutional investments. The report states that these will increase in 2019 due to advances in over-the-counter (OTC) trading and custody solutions.
Notably, this comes just days after a leaked interview revealed how SEC Commissioner teased the possibility of an upcoming Bitcoin ETF. However, the Fundstrat report also mentions how general interest in cryptocurrency could be elevated as an effect of the rumors that Bitmain and Bitfury may be considering initial public offerings (IPOs).
Notably, the release of this report coincided with the recent market uptick, which saw the price of Bitcoin jump to over $3,600. Bitcoin is currently still trading above this level, although it remains to be seen how it continues to develop in the coming days and weeks.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.