Fundstrat, a New-York based research company that offers insights into financial markets, has released a report on their 2019 outlook for the crypto market.
CRYPTO: we published our 2019 crypto outlook this am. Positive incremental developments coming. First paragraph below. pic.twitter.com/JkkBEvRmxl
— Thomas Lee (@fundstrat) February 8, 2019
The team listed 9 factors behind the improvement of the market, which they believe will support the rise in crypto prices. These factors are categorized into macro, technical, fiat-crypto inflows, blockchain, and equity.
The report also details how increased scrutiny of ICOs and uncertain regulation have affected market growth in 2018 — issues which should be resolved in 2019 as regulatory bodies develop clearer laws surrounding digital assets, and projects double down on developing scalable platforms that can focus on suitable use cases.
Stating that primary growth drivers will be adoption and use-case refinement, the introduction is reserved in its hope for 2019, saying:
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.
Fundstrat co-founder Thomas Lee, who predicted that Bitcoin would return to $15,000 levels by the end of 2018, remains optimistic about this year despite the market not living up to his prediction, pointing to a change in TA charts in recent time:
CRYPTO: Some TA's who were bearish in 2019 are becoming incrementally bullish on #BTC $BTC
The one below refers to the 200-week mavg acting as support, something @rsluymer @fundstrat TA also noted as key support for Bitcoin.https://t.co/QOBqcQ83FV
— Thomas Lee (@fundstrat) February 10, 2019
Fundstrat recently warned investors that the market could hit a new low.
Other Reports Also Point to a Bull Market in 2019
Fundstrat’s report concurs with the general sentiment put out by other reports of the same kind, such as PwC’s report that institutional investment will pick up this year and Morgan Stanley’s report on the rise of digital assets as a new asset class.
Additionally, several countries are mulling over how to tackle cryptocurrency. Even countries with a historically negative outlook on the industry and assets, like India, are forming regulations that would allow for the technology to exist side by side with fiat currency.
While the expected regulation in such nations may not be ideal for ardent investors, it does point towards a global movement of acceptance for cryptocurrency.
One thing is certain, improvements in the fundamentals will encourage investors who are sitting on the fence with respect to cryptocurrencies to consider investing in the emerging asset class.