New York City-based financial research company Fundstrat Global Advisors released its 2019 outlook for the crypto industry on Friday, predicting higher cryptocurrency prices buoyed by incremental improvements in the space.
The company posted the first paragraph of the report — which requires a paid subscription — on their Twitter account, giving readers a window into their viewpoint. The snippet makes mention of the “negative headwinds” that met the cryptosphere in 2018, notably “ICO post-hangover, adverse regulatory developments, excessive exuberance,” while noting that the positive developments, “lightning, exchange expansions, wallet growth,” specifically, were not enough to propel upward price movement.
The crypto space, the report continues, could ultimately not live up to the hype in 2018, after expectations were set extraordinarily high after the bull run at the end of 2017. However, in 2019, expectations are “non-existent or very low,” which one could argue creates a more favorable climate for growth to occur. Furthermore, “blockchain/crypto-currencies adoption curve is early” no matter how it is measured, meaning “the primary driver of growth will be adoption (driving network value) and improving on use cases (utility value).”
Fundstrat co-founder and Wall Street analyst, Tom Lee, elaborated on the study on his Twitter account, posting an infographic that points out how eleven key market tendencies have evolved from 2017 to 2019, with nine being positive (more fiat on-ramps into crypto, increased institutional investments, BTC vs. 200 day moving average, to name a few), one being neutral (more self-regulation in the industry), and one being negative (funds having difficulty raising money).
The Fundstrat opening paragraph ends by predicting that 2019 will not be the breakout year for crypto, but that it will be the year prices find a new bottom, and “stag[e] a visible recovery” towards the year’s end. After the bearish trend that lasted all of 2018, this would be a big win for crypto investors.