Fundstrat Global Advisors, the New York-based research company headed up by Tom Lee, the crypto bull, has tweeted about its report on the outlook for crypto in 2019. Most importantly, it describes the incremental improvements that will purportedly support higher prices for cryptocurrencies.
Tom Lee, who is known for his bold statements about cryptocurrencies, posted an introduction to the report in his Twitter feed, said, “We see 9 incremental improvements in the landscape that ultimately support higher prices.” The report contains statistics and infographics that trace key market tendencies from 2017 to now.
A preview of the introduction chapter provides a brief assessment of 2018, which, as Fundstrat remarks, was a disappointing year for many people.
The analysts’ assessment of what happened in 2018 includes a look at “the initial coin offering (ICO) post-hangover, adverse regulatory developments and excessive exuberance” as contributory factors resulting in a bear market and a reversal of achievements in the industry, such as the growth in crypto wallet ownership and the launch of the Lightning Network.
Fundstrat believes we will see change happen slowly but surely in 2019. It admits that it is too early to talk about mass adoption, but does believe that crypto prices will improv: “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.”
The Fundstrat report also claims that a weakened US Dollar may provide the reason for a rise in the bitcoin price and its analysts also believe that emerging market equities will outperform U.S. stocks and bonds, thus creating a friendly environment for crypto. Other predictions include an increase in institutional investments in crypto this year due to the developments in custody solutions and over-the-counter (OTC) trading, and that this could also stimulate crypto prices.
Binance exchange also gets a mention as the Fundstrat analysts suggest the exchange’s recent decision to support credit card crypto purchases may lead to an increase in crypto prices and that possible IPOs for Bitfury and Bitmain may also boost the market.