Five Indicators Bitcoin Is Entering A Bull Run – Varys Capital

Transactions not involving the top 100 addresses are also gradually trending upwards, suggesting healthy P2P, B2B, or P2B transactions are growing as well. A strong cryptocurrency market requires organic participation from all levels of the market, rather than whales and investors merely trading coins back and forth while everyone sits on the sidelines and watches. A currency’s primary purpose is acting as a medium for exchange, and transactions growing beyond the highest point of the market shows that that is occurring. In 2017, the richest 100 addresses controlled 17.3% of all issued currency, so it is a significant amount of high-level activity that is being excluded by this graph to demonstrate viability at the lower end.

5. Fidelity Investments Announces Commencement of Bitcoin Trading

On May 6th, Fidelity Investments announced that it was opening up Bitcoin trading to institutional clients, breaking ranks with a Wall Street financial system that has up to this point been reluctant to engage with Bitcoin. Initially, Fidelity participated in the crypto space as a custodian, which meant they would safeguard existing assets, but not participate directly in the market. Since they are offering trading services to only institutional clients at this time, this is a strong indicator that market sentiment is beginning to shift regarding cryptocurrency. Previously, it was seen as a risky investment and difficult to work with; institutions cited security, volatility, and lack of regulations as the primary reasons for avoiding it. It would seem given the data points shown previously that this is a market segment that can no longer be ignored.

Anthony Pompliano, co-founder and partner of Morgan Creek spoke of the announcement by saying, “Eventually, every financial services company will do this. If Bitcoin achieved $100+ billion market cap without institutional interest, imagine what happens when the smart money joins.” Up until now, the vast majority of Bitcoin investment in the US has been through retail investments and prices have already seen peaks of nearly $20,000. As of this writing, the price has broken back through the $7,000 barrier and still climbing. It is a compelling thought that institutions are beginning to examine the market seriously at this stage of the game after the last market peak did not give them a reason to invest. If the biggest investors with the greatest pools of collective financial acumen are now interested in a space that has up until now been populated almost entirely by retail investors; that is surely a sign that further potential in the market exists.

Conclusion

The past year has represented something of a cocoon for Bitcoin, giving it a chance to rest and reinvent itself. The falling price has given the community a great chance to work on developing and bolstering the financial ecosystem and given the currency a chance to shed its connotations of being a speculative gambling venue rather than the medium of trade and investment that it truly is. If the market heads in the direction that all of these positive indicators are pointing in, it will truly be a bull run to remember.

If you have questions about our fund or would like to be sent investor documents, you can contact our investor relations department at contact@varys.capital.

Regards,

Darius & Saul
Management Team

*Article was written May 2019