Header logo
  1. Research
  2. Miscellaneous

Crypto Spring Has Begun in the Face of Mass Skepticism

May 16, 2019 • 2 Min Read
Author
Tom Lee, CFA
Tom Lee, CFA AC

By Thomas J. Lee, May 15, 2019

The 2018 crypto bear market was more painful than any other prior crypto downturn because many of those hurt were retail investors new to the asset class.  That 85% crushing decline not only wiped out investor capital, but sentimentwise left many of those newbies thinking Bitcoin and crypto broadly were declining into oblivion.

As bad as 2018 has been, 2019 has seen a surprising resurgence in crypto markets, both in price and dynamism, which naturally begs the question: Is  the “Crypto winter” over?

I think the Crypto Spring has begun and four important factors inform my conclusion: improving fundamentals and sentiment.  Price technical are positive, and the market appears to be reaching a supply/demand balance.

The chart in this report is only accessible to members
Fundamentals:  Bitcoin’s on-chain volumes are up year to date, the first increase since 2017.   Facebook, for example, is developing its own decentralized platform including a crypto-currency, and several banks have announced their own “stable coins” which are digital versions of cash.  Equally important, there’s been a surge in Bitcoin usage and volumes in countries where financial stability have worsened. Bitcoin and crypto have become a lot more useful in 2019.Sentiment: Cr...

Unlock this page with a FREE 30-Day Trial!

*Free trial available only on a monthly plan

Already a member?

Reports you may have missed

Crypto Event Summary - Avalanche House

Over Friday and Saturday last week, Avalanche Labs put on their second edition of ‘Avalanche House’ in Brooklyn (with the first one in Berlin). The team attended Friday afternoon’s session as outlined below and shared the following notes and perspectives from the panelists. FIGURE: AVALANCHE HOUSE PANELIST SESSIONSTRATEGIC FUNDRAISING DURING A BEAR MARKET _Lydia Chiu (Ava Labs), Tom Schmidt (Dragonfly Capital), Nina Bambysheva (Forbes), Travis Scher (North Island Ventures)__ _The...

Bitcoin has a shot at $100,000 in ‘everything rally’ that sweeps up stock market, Fundstrat’s Tom Lee predicts

We are writing to update our clients on the events of this past weekend and highlight a few data points we will be keeping an eye on moving forward into the next couple of weeks. On Friday, December 3rd, over $2 billion in long positions across the global crypto market were liquidated, nearly $850 million of which were from BTC futures.Almost $500 billion in total market value was wiped from the...

Bitcoin Is A New Concept Of Virtual Money, The Graphics And Digital Background. Coins With The Image Of The Letter B.

Crypto markets sell-off following regulatory news out of China, as the PBoC released a document laying out its intentions for stricter regulation and enforcement measures on crypto.This is not the first time China has “banned” crypto (and probably won’t be the last). Historical price movement post-ban is mixed.This news might serve as an alternate explanation for some of the outsized volume from Asian exchanges earlier in the week.$38,000 appears to...

As shown below, Bitcoin's forward performance is far stronger when it is trading above its 200D moving average: >200D, 6M forward return    +193% <200D, 6M forward return       +10% You get the picture, Bitcoin is a network effect/network value asset, and also apparently aided by price momentum. _STRATEGY: BUY BITCOIN OR BUY CRYPTO EQUITIES_ The associated action for Rule #3 is simple. - go long _WHY IS THIS...

BTC -3.26% ETH -2.76% MOGO MSTR 0.91% RIOT -2.67% SI N/A% VYGVF

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 1/1

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In