Former Wall Street Investor: Big Chance Crypto is Best Performing Asset in 2019

[cybersofts]

Travis Kling, a former Point72 Asset Management executive, a hedge fund that oversees $12.4 billion in assets, said that there is a big chance crypto becomes the best performing asset in 2019.

The Ikigai Fund founder made the case that cryptocurrencies were never present during a proper bear market in traditional finance and the decline of the Nasdaq Composite and the Dow Jones could lead more investors into the cryptocurrency space.

He said:

    Crypto has never existed during a bear market in traditional assets. BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain There is a significant chance Crypto is the best performing asset class in 2019

    Crypto has never existed during a bear market in traditional assets.

    BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain

    There is a significant chance Crypto is the best performing asset class in 2019 pic.twitter.com/vIdKTrm5sV

    — Travis Kling (@Travis_Kling) December 23, 2018

 
Will More Investors Enter Crypto?
This week, the U.S. stock market officially entered a bear market as the Nasdaq Composite lost more than 20 percent of its value within one quarter.

While the market would have to drop by an additional 20 percent to delete 2017 gains, which was the best performing year in recent history, a steep sell-off in the broader financial market has started to largely impact both large-scale conglomerates and small to medium-size businesses.

Kling, who now operates a cryptocurrency-focused fund, said that it makes “sense” for the crypto market to bottom before the stock market achieves a bottom, considering the intensity of the sell-off of U.S markets and the struggle of the Chinese economy.

“You’re already seeing that. Been seeing it all year. It would make complete sense to me that crypto would bottom out months before traditional asset classes,” the investor added.

In August, Kling created Ikigai Fund and resigned his position at Point72 with a strong belief in the long-term prospect of the cryptocurrency sector.

At the time, he emphasized that he believes cryptocurrencies have the potential to become a multi-trillion dollar asset class.

Since then, the valuation of the cryptocurrency market has more than halved from $300 billion to $144 billion. Still, Kling remains confident that the bear cycle of the cryptocurrency market will come to an end in the months to come, as it has done throughout the past nine years.

“Same as that earlier invention, I believe crypto will create trillions of dollars along the way. Already the market for virtual coins is valued at hundreds of billions of dollars. And it’s all just getting started. So I left Point72, billionaire Steven A. Cohen’s hedge fund, in December to continue my investing career, but in a new asset class,” Kling wrote on August 1.


Prospect of Recovery
Since early December, from $100 billion to $144 billion, the cryptocurrency market added $44 billion to its valuation amidst a strong corrective rally.

Ethereum (ETH) and Ripple (XRP) have increased by around 60 percent within the past week, mostly due to extremely oversold conditions the market demonstrated.

But, many traders and analysts believe the bear market of cryptocurrencies is not over just yet but it may be at the last phase of the downtrend.


Reference: https://www.ccn.com/former-wall-street-investor-big-chance-crypto-is-best-performing-asset-in-2019/

[davis196]

Really nice cartoon.I wanna hire the author of that cartoon.
I'm surprised by the fast ethereum and ripple recovery.I wish that bitcoin price could recover with about 60% for one week,but we just have to wait for that to come.It will come for sure,sooner or later.
By the way,this forum is flooded with ccn.com articles...

[5ensei]

With the stock markets down some are switching over to crypto, and then of course when the stock market returns people will invest in both because normally the crypto market charts correlate with the stock market charts. Good time to invest if anyone has any spare funds

[Febo]

Former Wall Street Investor: Big Chance Crypto is Best Performing Asset in 2019

He dont really need to do much researches. So far in last 10 years only year 2014 was worse (-59% drop) and so it will be 2018.  As 10 years history teaches us is really really hard to expect Bitcoin will be 2 years in a roll in negative numbers. And no matter how big rally can shares have they will not be able to cope with Bitcoins year of "stability", like was year 2015 with (+36% increase).

[Tytanowy Janusz]

Yep. 2019 - 2020 will be so interesting for bitcoin ... first bear market on stocks for bitcoin. Im thinking very often about that and every time i have different conclusions. It might be pump to new ATH due to running from traditional assets or dump to 100$ as running from high volatility asset.

[DudeAtWork420]

With the stock markets down some are switching over to crypto, and then of course when the stock market returns people will invest in both because normally the crypto market charts correlate with the stock market charts. Good time to invest if anyone has any spare funds

There is no guarantee about this claim, stocks are down at this moment no doubt about this. But it does not mean, the traders are moving their capital to cryptocurrency directly, and literally most trader that used to trade stocks are afraid of Bitcoin right now. They are afraid because Bitcoin got pumped so hard for a couple of years while stocks were not.

just hope in 2019, the market is not getting any worse than this.

[fudster]

The older the crypto market, the  more it goes  upward after all technology  is getting better and adoption is taking steps towards it.  There is no reason  for technology and blockchain companies decline this low even this bear market investors shows the  strong support. There were more start up companies created still.

[clrpod]

While I'm more bullish in crypto than anything else I'm not really sure that we'll see a great 2019 for the price of cryptocurrencies. I think we'll see breakthroughs in adoption but there won't be any strong bullish momentum, at least not in the first part of 2019. Compare that to the stock market which will go almost entirely off the world economy and it's easy to see a scenario in which the stock market outperforms crypto. Beyond that I think real estate will be one of the best performing assets of 2019.

[Tytanowy Janusz]

The older the crypto market, the  more it goes  upward after all technology  is getting better and adoption is taking steps towards it.  There is no reason  for technology and blockchain companies decline this low even this bear market investors shows the  strong support. There were more start up companies created still.

But we dont know where is bitcoin price based on technology usage. I mean where is actual value of bitcoin based only on actual usage of bitcoin (store of value and transfer of value). We dont know how much lambo investors are left. Maybe true value of bitcoin is around 10$, where everyone who has it is actually using it, not speculating on it. After 1 year this actual value would be 100$ due to better adoption and better technology but its still not even close to current price. It might also be 2000$ or 3000$. We dont know ...thats why saing that bitcoin will soonly recover because technology is better and better and mass adoption is better and better is risky in my opinion.

Same with other cryptos. Does really unfinished product, full of bugs, created to enable creating tokens called etherum is really worth 14 bil $? If it will hit mass adoption in next 10 years ... peraps. For sure not now especially if you consider risk that it might never hit mass adoption due to fact that we have also eos, tron, waves, neo, stellar, nem, cardano, lisk and manny others doing the same.

[Crypdon]

He is in charge of $12 billion in assets so why doesn't he put his money where his mouth is and buy up all of the bitcoins he can get his hands on. Ask the Mt Gox team for an OTC trade so he can get the highest gains in 2019

[clrpod]

He is in charge of $12 billion in assets so why doesn't he put his money where his mouth is and buy up all of the bitcoins he can get his hands on. Ask the Mt Gox team for an OTC trade so he can get the highest gains in 2019

Well for one he's not in charge of that fund and that money, even if he were then he still has to consider the interests of his investors, he needs to set aside his own opinions and ensure he takes smart decisions which are backed up by studies and the people around him. Any hedge fund going all in on just one asset will fail.

[pooya87]

in some ways i can see that happening very easily.
considering the bear market of other markets has just started and it can take a while before it concludes, in addition to considering the fact that bitcoin is nearly done with dropping and in my opinion it is currently in a reverse bubble aka an undervalued state, you can see how it can start reversing and going back up soon enough.

and when that happens while other assets (stocks for example) are dropping in value, it can attract a lot of attention and a lot of investors which means it can have a much bigger rise because of that.

[okala]

Let the positive news and analysis started coming in and we would have years of celebration.  2019 has many good news coming up and I do believe that bitcoin and cryptocurrencies market is going to be the best investments of the year unlike what we recorded last year.

[bitbunnny]

I'm not sure if this is really grounded analysis based on facts or just a way to try to wake optimism in investors and encourage further investments and his personal opinion. The time will tell, I guess. Anyway, it's good to start the New year with positive news and hope that market will recover.

[Bonsaiav]

News coming from Wall Street people usually tends to continue to be real and proven between 7 to 10 days after, such as the increase that occurred in 2017 and the decline that occurred throughout 2018. Therefore, I hope that what Travis Kling has said can have a good effect on most crypto investors who have long lost their enthusiasm for the cryptocurrency.

Will More Investors Enter Crypto?

I think yes, because to this day the performance of cryptocurrencies is still feasible for us to rely on to patch our economy in the future, and anyone (who has a smart mindset) can succeed with crypto, as long as he has a strong belief in himself.

[wuvdoll]

Lets take a look at the data we have right now. Crypto has already gone down a whole lot in the previous year, in 2019 we are expecting a new STO that will allow ICO to go away and make way for better investment chances for us, we are waiting for SEC to decide on this ETF already, we are expecting BAKKT to start and we have a chance at NASDAQ listing bitcoin as an option.

Look at stock markets now, they do not provide any promise, they are going down, economy is bad and inflation is increasing. I think it is clear to say crypto assets have a much better potential than anything else you could hope for. Nothing in traditional investment have the type of "good news" bitcoin and crypto is expecting, maybe if politicians do something or FED does something to improve the market the potential could be similar.

[thecodebear]

I think that is pretty obvious. Stocks are looking at another down year, while crypto is at the bottom. The only time crypto isn't the best asset to buy for a given year is during a crash or just before a crash. Even if Bitcoin takes most of the year to turn around and only doubles, that is obviously much better than what any major stock will do this year and far better than the almost guaranteed double digits percentage loses the stock markets in general will show this year.

[figmentofmyass]

I think that is pretty obvious. Stocks are looking at another down year, while crypto is at the bottom. The only time crypto isn't the best asset to buy for a given year is during a crash or just before a crash.

they might both be setting up for a sideways year. the equities market had a couple corrections post-2008 that began with harsh downward spikes like this but ended up as flat corrections that lasted 1-2 years, followed by bull market continuation. other markets (like real estate) don't look nearly as shaky, so i'm inclined to think what we're seeing is the beginning of mid term volatility rather than outright crashing.

bitcoin is probably in a similar place. the brunt of the damage is already done, but it'll probably take a good year to shake off the 2018 crash and really turn things around.

[omonuyak]

I really like cryptocurrencies to become the best investment of 2019 and I wish we could really made some profits this year from holding. We are going to have some limitations especially from the beginning of the year but I strongly believe that 2019 is going to be another cryptocurrencies year.

[dothebeats]

A big chance, but I'll still go for a sideways movement for 2019 before going on to do all things crazy on 2020. The way I see it, we're just barely catching up from the horrors of the 2018 crash, and there are still a lot of things to shrug before getting on to a massive push. Institutional money might pour in @ bitcoin for this year but it will not go directly to the market just yet but rather on side channels such as the futures market and Bakkt should it get launched this year.