Fundstrat Expects 2019 to Bring Incremental Improvements in Crypto Prices

Lloyd Doyle
February 14, 2019

The report notes that there is going to be an incremental improvement in the universe as digital assets increase in price.

In a recent tweet outlining the premise of a company report, Thomas Lee, the co-founder of Fundstrat, expressed why cryptocurrencies' prospects could move from "negative" to decidedly "positive" over the course of 2019. He posted an introduction to the study and infographics that trace key market tendencies from 2017 to now.

CRYPTO: we see 9 incremental improvements in the landscape that ultimately support higher prices.

The report's introductory chapter is an overview about the performance of the cryptocurrency market in 2018, which was overall very disappointing.

Fundstrat's analysts stated that there were a number of reasons why a year ago was so hard for the cryptocurrency market.

While Lee takes a sensible, analytical approach to bitcoin moving forward, others are far more exuberant. Finally, over exuberance in the crypto market also impacted industry negative. However, Fundstrat believes that the cryptocurrency prices will recover and the the situation will certainly change.

As per the analysis, 2018 was much like a "morning after sobering".

People have been expecting 2019 to be more bullish and most importantly to mark the crypto mass adoption. However, by the end of this year, prices are expected to be on the upswing.

In addition to all this, the folks over at Fundstrat also expect the USA dollar to weaken during coming 4-6 months- something that will most likely catalyze an "inverse trend" in the price of Bitcoin. Similarly, the firm expects market equities to outperform the United States stock market, which Fundstrat postulates will invigorate crypto and other similarly non-correlated, risk-on assets.

While their report did not go into details regarding the specific pinpoint timing of when they're expecting the assets to make moves in these directions, the report focused more on the generalized notion of 2019; Fundstrat additionally reported that with these new developments, they're confident of Bitcoin surpassing $20,000 by the end of the year as well. Also noted is the potential positive effect of initial public offering (IPO) applications by mining giants Bitmain and Bitfury.

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