The virtual currency market experienced a very hard 2018 and all the analysts are expecting 2019 to be the year of the recovery. Bitcoin (BTC) has lost more than 82% of its value since its all-time high but it could start recovering part of the price lost as soon as on January 2.
According to a recent report released by Sarson Funds, an independent provided of cryptocurrency investment vehicles, Bitcoin reached a bottom in December when it was traded close to $3,150 and a new rally would start on January 2, 2019.
In this report, Managing Partner at Sarson Funds, John Sarson, explained that investors should pay attention to January 2nd since institutional capital could start entering the market.
On the matter, he wrote:
“Hedge fund managers possess unique insight… into capital flows that are not yet printed. Most other hedge funds would agree (though they might not tell you), that a substantial number of institutional and high net worth prospects have re-engaged and have committed capital to cryptocurrencies.”
According to Sarson, few investors want an extra K1 form for just one month of management. At the same time, hedge funds and crypto managers commented that clients wait and come in on January 2nd.
As soon as banks re-open, hedge funds holding on to new deposits will clear to wire deposits to crypto exchanges. This buying power is expected to create a ‘massive surge in price.’ Additionally, the recent positive price action in the market could be related to smaller investors trying to enter the space before institutions.
Sarson believes that since December 15th, buying pressure in the space has already ‘outsripped’ supply. He finishes by recommending investors to take crypto positions before institutions enter the space.