Fundstrat: Incremental Improvements Over 2019 Will Support Higher Crypto Prices
Fundstrat Global Advisors has released an analysis of its crypto outlook for 2019, a summary of which points to several “incremental improvements” as factors that are likely to support higher prices for major cryptocurrencies.
Fundstrat’s outlook comes at the same time as the crypto market posted upward movements in prices, with most coins in the top ten cryptocurrencies seeing an upsurge that held throughout the weekend.
The positive performance now appears to have jolted crypto market experts, many of whom believe an upward movement is possible in 2019.
Fundstrat expects 2019 incremental improvements to support higher prices
The New York-based research firm’s co-founder Tom Lee has said before that bitcoin’s current price doesn’t reflect its “fair value.”
The analyst said in late 2018 that he was done giving bitcoin price predictions, even though he maintained that BTC’s fair value was around his earlier forecast of $25,000.
Lee, however, is one of Wall Street’s top pro-crypto analysts and his latest comments maintain that positivity.
Lee says that the future of crypto will get a significant boost from “9 incremental improvements” within the industry, and which will “ultimately support higher prices.”
According to the firm, the 2018 crypto performance was a great disappointment (the firm’s forecasts for bitcoin never materialized as the leading crypto lost over 80 percent of its value).
The company’s study points to a number of negative headwinds as having contributed to the meltdown, including the ICO market flop, adverse regulatory developments as well as excessive enthusiasm.
These, in turn, overshadowed some crypto-related achievements like the success of Lightning Network and growth in the crypto wallet sector.
As per the analysis, 2018 was much like a “morning after sobering.” However, 2019 is likely to present an entirely different scenario that could see significant changes come to the end of the year.
Nonetheless, the optimism should not lead people to believe mass adoption is on the cards, Fundstrat warns.
Part of the report reads:
“Is 2019 the mainstream breakout year? 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.”
Weakening of the dollar
Pointers to incremental improvements include the United States dollar weakening considerably in coming months as well as emerging market equities outperforming U.S. stocks and bonds.
These, the firm notes, will create a friendly environment for cryptocurrencies to recover.
Fundstrat also expects interest from institutional investments will spike in 2019 following the launch of several custodial solutions and over-the-counter (OTC) trading desks.
Another potential factor could be an influx of consumers into crypto following Binance’s decision to allow for crypto via credit cards. Also noted is the potential positive effect of initial public offering (IPO) applications by mining giants Bitmain and Bitfury.
Major cryptos surged by as much as 10 percent (Litecoin (LTC) jumped nearly 38 percent) to stir the crypto community into optimism. However, as the Fundstrat report notes, crypto has to move from “negative to decidedly positive” before these gains register for a proper price rally.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.