CRYPTO ASSETS POISED FOR REBOUND

More than five months into 2018, the crypto asset class largely underperformed other asset classes with Bitcoin pulling back by more than 40% from its all-time high. The price of Bitcoin hovered around US$10,000 on multiple occasions this year but failed to emulate the strong bull run that saw its price skyrocket last year from US$9,000 to US$20,000 in a matter of weeks.

However, in contrast to Bitcoin’s performance so far, the consensus among crypto luminaries is that Bitcoin will retest its previous high of US$20,000 in the coming months, primarily due to the impending deluge of institutional capital that is currently sitting on the sidelines.

Coinbase is launching a suite of products targeted at institutional investors and will provide the much-needed rails for onboarding big money investors into the crypto sphere. Wall Street’s acceptance of cryptocurrencies was another notable highlight in early 2018, with GS-backed Circle’s acquisition of Poloniex and its subsequent fundraising that gave it a unicorn status. Bloomberg’s launch of a cryptocurrency index in association with Novogratz-backed Galaxy Digital was another positive sign.

The biggest curveball for crypto investors this year could come from the regulators. The US Securities and Exchange Commission (SEC) is expected to come up with guidelines for classifying tokens into security and utility tokens, which might have grave consequences for unregistered ICOs, including Ethereum and might set a precedent for regulators across the globe.

Satoshi & Co is the research arm of ZPX Pte Ltd, a blockchain-based fintech platform providing liquidity in the private markets. Satoshi & Co strives to bring rigorous, holistic approach to analyzing the crypto markets, combining fundamental, technical and technological analysis and insights. For more information, please visit www.satoshiand.co

Note: Supply Adjusted Market Cap = (Expected Supply in 2050) *(Current Market Price). Supply Adjusted Market Cap is a better indicator as it accounts for differences in supply schedules of various currencies.

Source: Onchainfx. Prices as of 4 PM SGT on 1 June 2018.

This article was first published on the MIllionaireAsia Issue 48 - June 2018