Fundstrat: Dollar Is Getting Cheaper, Bitcoin In On The Way To Positive Trend In 2019
In a recent tweet outlining the premise of a company report, Thomas Lee, the co-founder of Fundstrat, expressed why cryptocurrencies’ prospects could move from “negative” to decidedly “positive” over the course of 2019.
Lee & Co., who called fundamentals “convergence trends,” laid out a normal of macro, technical, fiat-to-crypto inflows, blockchain technology, and equity trends to back their analysis, Newsbtc reports.
One of the first positive convergence trends is the weakening of the US dollar, which Fundstrat envisage will inversely affect the non-correlated BTC price. Similarly, the firm expects market equities to outperform the US stock market, which Fundstrat postulates will invigorate crypto and other similarly non-correlated, risk-on assets.
Rob Sluymer, the head of technical research at Fundstrat, went on to paint a foreboding picture for Bitcoin. While he was hesitant to mention specific time frames in a bid to stay cohesive with company policy, the former RBC Managing Director stated that a price point to watch for BTC will be $3,100. In his eyes, if the cryptocurrency breaks under its Q4 lows at ~$3,150, a move to $2,270 wouldn’t be unlikely, as that would indicate that the market hasn’t found a long-term floor just yet.