Travis Kling, a former executive of Point72 Asset Management, a hedge fund that controls $ 12.4 billion in assets, said that in 2019 it's a big chance that cryptography will become the best asset.
The founder of the Ikigai Fund argued that cryptocurrencies had never been present during an adequate bearish market in traditional finance and the decline of the Nasdaq Composite and the Dow Jones could bring more investors into the cryptocurrency space.
he He said:
Crypto never existed during a bear market in traditional goods. BTC was born at the start of the largest global QE monetary experiment. The end of QE is causing pain C & # 39; it is a significant possibility that Crypto is the class of business with the best performance in 2019
Crypto never existed during a bear market in traditional goods.
BTC was born at the start of the largest global QE monetary experiment. The end of QE is causing pain
There is a significant possibility that Crypto is the best asset class of 2019 pic.twitter.com/vIdKTrm5sV
– Travis Kling (@Travis_Kling) December 23, 2018
Will other investors enter Crypto?
This week, the US stock market officially entered a bear market as the Nasdaq Composite lost more than 20% of its value by a quarter.
While the market is expected to fall another 20 percent to eliminate earnings in 2017, which was the best year for recent history, a sharp sell-off in the broader financial market began to hit both conglomerates large size that small medium-sized businesses.
Kling, who now runs a fund focused on cryptocurrency, said it "makes sense" to the cryptography market before the stock market reaches a minimum, considering the sell-off intensity of US markets and the struggle of the Chinese economy.
"You're already seeing it." "We've seen it all year." It would make perfect sense to me that cryptography would end up months before traditional investment classes, "added the investor.
In August, Kling created the Ikigai Fund and resigned from his position in Point 72 with a strong belief in the long-term perspective of the cryptocurrency industry.
At the time, he stressed that he believes cryptocurrencies have the potential to become a multi-trillion dollar asset class.
Since then, the cryptocurrency market valuation has more than halved from $ 300 to $ 144 billion. However, Kling remains confident that the bear cycle of the cryptocurrency market will end in the coming months, as it has done over the past nine years.
"As in the previous invention, I think Crypto will create trillions of dollars along the way, the virtual coin market is already valued at hundreds of billions of dollars, and it's all just started. 39; billionaire hedge fund Steven A. Cohen, to continue my career as an investor, but in a new asset class, "wrote Kling on August 1st.
From early December, from $ 100 billion to $ 144 billion, the cryptocurrency market added $ 44 billion to its valuation in the midst of a strong corrective rally.
Ethereum (ETH) and Ripple (XRP) increased by about 60 percent in the last week, mainly due to the oversold conditions the market has shown.
But many traders and analysts believe that the cryptocurrency bear market is not yet finished but may be in the last phase of the downtrend.
Shutterstock foreground image. Photo by Travis Kling from LinkedIn.
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