Fundstrat Expects 2019 to Bring Incremental Improvements inCrypto Prices
Fundstrat Global Advisors, a New York-based research company has released its 2019 crypto outlook on Friday, Feb. 8. The analysts describe incremental improvements that will purportedly support higher prices for cryptocurrencies.
The co-founder of Fundstrat Tom Lee, commented on the study in his Twitter. He posted an introduction to the study and infographics that trace key market tendencies from 2017 to now.
“We see 9 incremental improvements in the landscape that ultimately support higher prices,” Lee’s tweet states.
The analysts state that negative headwinds, such as the initial coin offering (ICO) post-hangover, adverse regulatory developments and excessive exuberance have reversed some of crypto’s achievements, including the launch of the Lightning Network and wallet growth. As a result, the year was more like a “morning after sobering”, the report reads.
However, in 2019, the situation will slowly start to change. Fundstrat says it believes it is still too early to talk about mass adoption, but notes that cryptocurrency prices will likely see a visible recovery:
“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.”
At the macro level, the report names the expected weakening of the United States dollar as a first reason behind Bitcoin (BTC) price recovery. Fundstrat’s analysts also believe that emerging market equities will outperform U.S. stocks and bonds, thus creating a friendly environment for crypto.
Moreover, Fundstrat mentions that the overall interest in crypto might be stimulated by Binance’s recent decision to support credit card crypto purchases, with the rumors that major companies like Bitmain and Bitfury might consider conducting initial public offerings (IPO).