research

Macro overview of the cryptoasset market, 
 the state of the Bitcoin network & outlook for Q3 2019

 
 
 


This is a two-part report on the current state of the cryptoasset market. Part 1 is a macro overview of the top-down forces that we see as conducive to the furthering of the cryptoasset ecosystem, while Part 2 focuses on a bottom-up approach, in analyzing the state of the Bitcoin network from a technical standpoint. We believe that approaching the task from both sides, is paramount to the sober and unbiased evaluation of the market’s current state, as well as in forming a robust understanding of the probability for the space and market outlook, for the remainder of 2019.

Through the analysis, we conclude that both (i) the macro environment - driven by Global Central Bank profligacy, currency instability and increasing political tensions, is being complemented by the ever strengthening legitimacy of crypto as an asset class, (ii) the increasingly maturing infrastructure that facilitates institutional capital deployment into the space and (iii) the virtuous state of the Bitcoin network - driven by the substitution of old HODLers with new, patient capital, the closing of the 2016-2018 market cycle and the continuously improving fundamentals, such as security and liquidity, are setting the stage for true, mainstream adoption of cryptoassets. We continue to believe that Bitcoin will pave the way, and other cryptoassets with strong fundamentals, will follow.