Does the Crypto Market Have The Strength To Break To The Upside? QCP Capital Weighs In
It’s been an interesting few months for the Cryptocurrency market. After a spectacular run-up late last year and early this year, it’s been largely downhill for most of 2020. We at QCP Capital are often asked: does the Crypto market have the strength to break to the upside?
The Technical Picture:
Let’s start with a look at the technical picture. Most charts in the crypto space still look rather ugly. Many of the major coins are stuck in downtrends or trading ranges, and have failed to break out of them so far.
Fundamentals:
In terms of fundamentals, the news coming out of the space is mixed. While the mining industry continues to expand and there is more institutional interest than ever before, overall market sentiment is still quite bearish.
Our Verdict:
At QCP Capital, we believe that the crypto market does indeed have the strength to break to the upside eventually. With the right catalysts, we believe that the market can rally significantly. That said, it’s important to keep in mind that this could be a long-term play, and investors should be prepared for any potential pullbacks in the meantime.
Five Reasons Why We Believe In Crypto’s Future:
1. The upcoming halving. The upcoming halving of the Bitcoin block reward will reduce the amount of Bitcoin entering circulation, and many believe that this will have a positive effect on the price of Bitcoin.
2. Increasing institutional interest. Institutional investors have been steadily increasing their participation in cryptocurrency, providing additional liquidity and increased confidence in the space
3. Increasing awareness and adoption. Crypto awareness and adoption are increasing significantly, particularly in North America, Europe and Eastern Asia.
4. Increased usage for payments. Crypto has been gaining traction as a payment option for business-to-business and consumer-to-business transactions. This is likely to continue, and the increased volume of transactions should have a positive effect on prices.
5. More regulatory clarity. Last but not least, more and more countries are beginning to regulate crypto, providing much-needed clarity and helping to legitimize the industry.
In conclusion, while the long-term prospects for the cryptocurrency market remain positive, investors should be aware of the risks associated with such an investment. With the right catalysts, however, we at QCP Capital believe that the crypto market has the strength to break to the upside!
