The sentiment around cryptocurrency investing is horrendous, and we like this a lot. Let’s be clear here: we only like this if fundamentals are good. We can tell readers that cryptocurrency and blockchain investing has tremendous fundamentals, although only for a small minority of cryptocurrency projects and blockchain stocks. The ones that will survive the ongoing ‘catharsis’ will do extremely well, we are as convinced as we can be about this. This article features InvestingHaven’s 5 must-read cryptocurrency predictions for 2019, which make the point why we are super-bullish on crypto and blockchain investing.
[Ed. note: This article with 5 cryptocurrency predictions for 2019 was originally published on October 21st, last year. Readers can verify this by checking the dates on the charts. Throughout 2019 we will update our cryptocurrency predictions for 2019, every once in a while. The new updates will appear at the bottom of the current cryptocurrency predictions article. It allows our followers to track the evolution of the cryptocurrency market as well as our own cryptocurrency predictions article. With every major update in 2019 we will also update the publish date. Last update of our 5 cryptocurrency predictions for 2019: April 14th, 2019.]
This fundamental picture of the crypto and blockchain market sets the stage, according to us, for the next wave in this sector. It may take another 6, 12 or even 18 months before this will translate into higher prices of cryptocurrencies and blockchain stocks, but that’s fine. Fundamentals and prices do not align most often, there is commonly a delay on higher or lower prices.
Based on these 5 must-read cryptocurrency predictions which we expect to materialize in 2019 readers will understand the point we make above.
Cryptocurrency predictions for 2019: Institutional money will be the catalyst
We see lots of signals that 2019 will be THE year in which institutional money will finally enter the cryptocurrency market. This is one of the cryptocurrency predictions for 2019 that will be a game changer for the crypto market, without any doubt.There are lots of signals that 2019 will be THE year in which institutional money finally will enter the #cryptocurrency market. This is one of the cryptocurrency predictions for 2019 that will be a game changer for… Click To Tweet
Many months ago we predicted this was about to happen, and we wrote it to our premium crypto subscribers. We are now seeing true supporting infrastructure being developed. Not only will we see Cryptocurrencies On The Nasdaq In 2019, which is an existing and huge trading platform, there are even brand new initiatives coming online.
To illustrate our point this week Fortune revelead something very important. Bakkt, a cryptocurrency investment platform for institutional money which will launch in November after SEC approval clearly sees a “war for institutional money waiting to investing in cryptocurrencies.” These are big statements, and they provide much more color and detail. Read the following 3 quotes from the article.
White says that the recent market trends give the false impression that investor interest in cryptocurrencies is waning, when in fact institutions are hungrier than ever. Since last December, Bitcoin’s price has dropped from $19,000 to $6,200, and the total market value of all digital currencies has shrunk by 70% to roughly $200 billion. “Far too often the public looks at price and market size to determine the progress in digital currencies,” says White.
“Cryptocurrency markets go their own way, we see bull and bear markets,” he says. “But what matters is that the number of daily transactions for all cryptocurrencies is up year over year. And we’re also seeing the introduction of new protocols from open source software developers that make cryptocurrencies far easier to use.”
For White, it was clear that Wall Street was ready to package digital assets for the masses––especially since cryptocurrencies strongly appealed to millennials. “In 2017, I saw a big shift,” he says. “The interest in Bitcoin and other currencies started changing from retail to the institutional side. But the level of infrastructure of the existing trading sites often didn’t meet their expectations. That’s why they’re waiting on the sidelines.” The big banks, says White, needed exchanges that provided the safety equivalent to what they enjoyed in trading equities, bonds or gold.
InvestingHaven’s research team wrote a detailed alert to its premium crypto subscribers with many more cases, as well as actionable tips on how to get the maximum out of this new trend.
In sum, it is stating the obvious that institutional money will be the catalyst for a resumption of cryptos grand bull market!
Ed. note added on April 14th, 2019: This recent Forbes article makes a good point on insitutional investing. It requires an ecosystem to facilitate safe custodian services. Yes, insitutional investing is evolving slower than anyone expected. Safety and the technological answer to it is a major part of the reason why.
But is institutional demand delayed or not present? We strongly believe the former. This article makes the point about a high demand, but no real sense of urgency by institutional investors. Grayscale, for instance, reported recently growing demand from institutions in Bitcoin investing. Morgan Creek Digital announced a largely oversubscribed institutional participation by public pension funds. And Fidelity starts offering cryptocurrency services to institutional clients. Bakkt keeps on pushing to get their platform up and running.
In the meantime with Bitcoin’s giant breakout we are pretty convinced that many crypto investors, also institutions, will start sensing some form of FOMO. We will certainly see this in the data in the next few weeks!
Cryptocurrency predictions for 2019: Bitcoin’s upside capped
We continue to feel strong about Bitcoin being the leading indicator for cryptocurrencies. It should be used to determine the trend: up, down, neutral. This is one of the more actionable cryptocurrency predictions for 2019.
However, Bitcoin is not likely the cryptocurrency that will deliver 10-fold returns similar to the previous 7 years.
The underlying reason is that Bitcoin futures will cap the upside potential because, for the first time since Bitcoin’s inception, there is two-sided trading in the Bitcoin market.
That’s why we said in our Bitcoin forecast that we believe that it is very realistic to expect a Bitcoin price of $25,000 as an upside target, assuming the crypto crash is over. Previous all-time highs will be taken out, but we believe Bitcoin will trade within its ‘bullish band’, not higher.
Cryptocurrency predictions for 2019: Ripple becomes the new Bitcoin
As per our article published on Medium ‘Why Bitcoin futures will fuel Ripple’s XRP token‘ we detailed why we believe that Ripple is the new Bitcoin. It certainly qualifies as one of our top cryptocurrency predictions for 2019 and even beyond!
Here is the key point: If you were an institution with millions of investment dollars, as per the first of our cryptocurrency predictions outlined above, which cryptocurrencies would you choose? Obviously you would apply the ‘low risk high reward’ principle, right?
Out of the 10 cryptocurrencies with the largest market cap we concluded the following:
For institutional investors the highest level of confidence will probably be for Ripple and its XRP token, followed by Bitcoin, Ethereum and Stellar Lumens.
If, and that’s a big IF, all assumptions we made in our Ripple forecast for 2019 materialize (institutional money flowing primarily to Ripple’s XRP token, Ripple’s tech solutions converging and using XRP, Ripple’s continued growth without chasing revenue to reach network effects) we see Ripple hitting the higher side of this channel twice in the next few years.
As a base case forecast we see one touch to the upper side of Ripple’s long term rising channel with a price forecast of $20. So we are confident that our Ripple price forecast of $20 for 2019 will be hit, and consider this the base case scenario.
Cryptocurrency predictions for 2019: only added value cryptos will do well
If there is one thing that the cryptocurrency crash in 2018 succeeded in doing very well is that it cleaned up the sector. In plain simple terms: create a catharsis. It certainly will benefit the really added value crypto projects in 2019.
The recent sell off in crypto prices resulted in many crypto projects going bust. Many have revealed their real face: scams.
As said many times 90% of cryptocurrencies will die. It seems that we are already at 50% right now: out of the 2000 cryptocurrencies almost 1000 are found to be dead and/or scam. You can find the full list here on https://deadcoins.com/. Obviously none of InvestingHaven’s top 10 cryptocurrencies appears on this list.
The cryptocurrencies that really deliver value are here to stay. They will continue to grow, and deliver more value.
We strongly believe that only the cryptocurrencies that deliver real added value will do very well starting in 2019, and do extremely well in the 2020-2022 period. Yes we are talking 100-baggers similar to last December.
It may be hard to believe but this is one of the cryptocurrency predictions that we are most confident about.
Ed. note added on April 14th, 2019: Talking about innovation, this is an amazing case. It is a must-read. This article contains real life presentation from a blockchain event in Asia. It talks about a huge market which is cross boarder remittances in Asia. This is huge as a market, but the super expensive technological solutions is the crux of the story. Read the article about the Asian remittances market.
Ripple is playing a pioneering role in solving this. “These services are also expensive for the end customer, especially migrants in low-income jobs. Transfers can take as long as five days to reach the recipient and when money is providing food for children and elderly relatives back home, a week-long delay is more than just an inconvenience.”
This is just one of the many illustrations how innovation is ongoing in a select number of cryptocurrencies. Some other great breakthrough innovations in 2019, so far, come from Tron Foundation. They launched the Bittorrent token. The aim is to help peer2peer exchanges on the Bittorrent network with a cryptocurrency as an incentivation mechanism. Similarly, Facebook is playing around with Whatsapp on remittance to the Indian market with a new cryptocurrency. “It is happening”, and only value add will win!
Cryptocurrency predictions for 2019: Blockchain implementations accelerate
It appears lately that blockchain spending by companies is going slower than expected. That’s why blockchain stocks are not doing very well.
However, that’s about to change in 2019. PricewaterhouseCoopers (PwC) works with many of the largest businesses in the world. It recently reported that many of its customers are spending BIG money on blockchain initiatives, and that blockchain spending should only keep growing.
According to PwC, the demand for services related to blockchain advisory is as high as $1.7 billion just this year!
This is a quote from PWC research as summarized (source):
On an individual basis, most firms have spent less $500,000 on blockchain. However, a good 11% of the survey’s respondents have spent more than $10 million.
Why is blockchain a budget item that isn’t going away anytime soon? That’s because this technology “reduces errors and streamlines operations because everyone is looking at the same numbers,” said Richard Johnson of Greenwich Associates.
With that kind of speed and accuracy, more companies are going to be allocating even bigger bucks to blockchain in the next few years. International Data Corporation expects annual blockchain spending to reach almost $12 billion by 2022.
And the following chart makes the point.
In sum these 5 cryptocurrency predictions for 2019 make the point that this sector is just warming up, not ending any bull market. For crypto investors this is of course crucial information to determine which positions to take, entry points as well as a decent exit plan.
InvestingHaven is proud to be the editor of the First Blockchain & Crypto Investing Service In The World. It publishes at least 2 alerts per week, has dozens of crypto and blockchain charts of its most favorite stocks and cryptocurrencies, helps with an exit plan for crypto investors. Moreover, it continues to scan the market for new opportunities, and shares them if and when they arise. You too can become a member now.
** January 6th, 2019 **
New cryptocurrency charts
It was a rough ride at end of the previous year, for all global markets including cryptocurrencies.
That’s why it is worth revising the 2 cryptocurrency charts in this article which was originally written 3 months ago!
The first chart is the chart of Bitcoin as 2019 kicks off. What happened since we originally published this article is that Bitcoin fell through its rising channel. This is not the most bullish development, admittedly. But the whole point is that this is part of the corrective cycle in the context of the 2nd bull market with subsequent bear market. Exactly the same happened during the first bear market.
People are doubting whether the crypto bull market will ever resume. We make the point that the next crypto bull market will be there the latest by 2020. The answer to this question is easily derived from below chart which maps fundamental analysis with chart analysis as per our proprietary method of our blockchain investing research service (this chart is a sneak preview of our service).
The second chart is an up-to-date chart of Ripple’s XRP price. As 2019 kicks off XRP has fallen through its long term rising channel. There are a couple of developments on this chart which cause us to maintain our very bullish opinion. First, it has held up strongly as few in the crypto space have, and it has set a higher low at the end of last year. Second, it is trading above the highs of 2017, above a horizontal band which is a characteristic of XRP (similar to 2015 and 2016).
** February 16th, 2019 **
How are our 5 cryptocurrency predictions for 2019 doing?
As a follow-up, mid Feb 2019, of our cryptocurrency predictions for 2019, we are not going to revise each of our 5 cryptocurrency predictions one by one. We prefer to approach things differently in this update: review our cryptocurrency leading indicator, Bitcoin, which should give a pointer of where the crypto market is headed.
Our leading indicator for the crypto space is Bitcoin, and its chart pattern and trend.
Up until recently Bitcoin, and with this also cryptocurrencies in general, were in no-man’s land. However, since last week, Bitcoin is on the move, and it is clearly committed to move higher in the next few weeks.
We expect Bitcoin to do a breakout attempt. Whether it will succeed or not? This is the answer we wrote to our premium cryptocurrency members which receive our cryptocurrency & blockchain investing research (consider this a sneak preview as it’s only exceptionally that we publish something from our premium member section):
Note the similarities on Bitcoin’s price chart with the April to November 2018 trend: a strong support got broken to the downside right at a time when resistance got touched. Will this time be different? Presumably yes, because if there is one thing that markets tend to do is go against the obvious. If the whole world looks at a breakdown similar to November 2018 likely the opposite will happen. That’s how markets work!
So yes there is a fair chance that the bottom is in!
If that’s the case it would imply that all our cryptocurrency predictions are underway, with this small note that the timeline may be delayed (not 2019, but 2020).
A very interesting factoid is one that comes from billionaire Novogratz who said this in a tweet recently: “Realizing having tweeted about crypto in a while. It’s a grind. Don’t think we head north for at least a few more months. Always take longer for institutions to move. Very confident they will. Tons of activity under the hood. Stay the course.”
We could not agree more, and it is our thesis for a long time now: the recovery process was delayed with some 9 months after the November 2018 breakdown, so we look at a start of a recovery after summer 2019. Hold on, crypto investors, you have survived the toughest part!
** April 14th, 2019 **
The 3d crypto bull market is a fact! Cryptocurrency prediction ‘check’.
On February 24th there were plenty of signs that the next crypto bull market would start sooner rather than later.
On April 2nd, 2019, there was finally the confirmation with Bitcoin giant breakout.
Everything we wrote in our long term Bitcoin chart came true. Go back to Bitcoin’s bullish long term chart. We identified many similarities with 2015, end of crypto bear market #2. Moreover, we got sufficient signs of peak pessimism. The chart looked awesome. That combination made us believe THE CRYPTO WINTER IS OVER.
Our observation and forecast was right!
That’s how smart investors play trends. It is a process, not a point in time.
This is how Tsaklanos his 1/99 Investing Principles come to live:
- 1 pct of the days in a year investors should be taking positions. This is 3 days a year.
- 99 pct of the days in a year investors should be monitoring their investing thesis and preparing positions. This is 363 days a year.
Investors who applied this principle took positions in February, March and on April 2nd. That’s it for this year, it really is.
The Most Beautiful Cryptocurrency Chart Of 2019
By far the most important key success factor to spot major tops and bottoms in the crypto market is to focus on the leading indicator which is Bitcoin. That’s the reason why we kept on focusing on Bitcoin’s chart in the last 15 months, and premium crypto members got weekly updates on what we read in Bitcoin’s chart and what it meant for the whole crypto market and our top 10 cryptocurrencies selection.
The key message of Bitcoin’s long term chart is that it has completed 2 bull markets and 2 bear markets (crypto winters). It CONFIRMED ON APRIL 2nd to transition from a bear market into a consolidation and its next bull market. This is similar to the situation in Jan 2015, see yellow circles in 2015 and 2019.
What’s next for Bitcoin? We wrote a very thorough update in our cryptocurrency investing research service (get instant access after signing up)! In essence, without revealing the details, we expect a series of higher lows but there are some bears on the road. It is imperative to continuously monitor this market, and identify where it may go wrong with bear market traps.Alert: the new crypto bull market started on April 2nd, 2019. The proof is visible on the most beautiful cryptocurrency chart of 2019. Our bullish forecasts are underway: #XRP to 20 USD, #BTC to $24k and #XLM to $4 in 24 months.… Click To Tweet
It is at this point in time that positions should be taken, even a couple of months ago. It is not too late.
[Ed. note: on April 2nd, 2019 the new crypto bull market started. Sign up for InvestingHaven’s blockchain & cryptocurrency investing service to get access to how to play the new crypto bull market, a selection of 10 best cryptocurrencies to invest in as well as blockchain stocks to consider.]