Fundstrat Global Advisors, the New York-based research company, has just recently unleashed its crypto outlook this year. The analyst reportedly described some incremental improvements that will significantly support higher prices for all digital currencies.
Key Market Tendencies
The company’s very own co-founder named Tom Lee expressed his views on Twitter about the study they released. The executive, who is also known as a pro-cryptocurrency Wall Street analyst, released an introduction to the aforementioned study, including infographics that seems to highlight key market tendencies from 2017 up to now.
As far as Lee and the Fundstrat Global Advisors are concerned, they are positive about seeing at least nine incremental improvements. The co-founder further stated that all of these can be found in the very landscape that ultimately supports higher prices for cryptos.
Basically, the preview of the introduction of the chapter offers a brief yet precise assessment of last year. According to Fundstrat, however, it has brought some major disappointments to the crypto space as a whole.
‘Visible Recovery’ For Cryptos
The analysts further suggest that there are negative headwinds responsible for the reversal of some of the digital currencies’ achievements. These include, but not limited to, adverse regulatory developments, post-hangover in Initial Coin Offering (ICO), and excessive exuberance. Even the recent launching of the Lightning Network and its wallet growth are part of these headwinds. Because of them, last year can be likened to a “morning after sobering” up.
But as far as this year is concerned, the situation is going to change despite being a slow pace. Fundstrat said that it is still quite early to talk about the possibility of mass adoption. However, it is safe to assume that digital currency prices are expected to see some visible recovery sooner or later.
The analyst said that 2019 does not necessarily mean a breakout year for cryptocurrency. But it does not suggest a bottom in this year for digital assets. In fact, they expect prices to be showcasing a significant “visible change.”
Recovery of Bitcoin
At a macro level, the report names the possible weakening of the U.S. dollar, which is the main reason behind the recovery of the world’s leading cryptocurrency called Bitcoin. The analysts at Fundstrat believe that all emerging market equities have the ability to completely outperform U.S. bonds and stocks, thus leading to a friendly environment for digital currencies.
The outlook further reiterated that much anticipated institutional investments could increase this year. And this could be attributed to the recent developments in custody solutions, as well as the ever-growing idea of implementing over-the-counter (OTC) trading.