Bitcoin and other major cryptocurrencies were in the red Monday, with bitcoin cash leading the way, down 7%.
Cryptocurrencies should get a boost this week following Consensus, a cryptocurrency conference, says Fundstrat Global Advisors.
The firm’s research predicts bitcoin has already bottomed out for the year.
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Major cryptocurrencies were sliding Monday, with losses of up to 7%, as Consensus, one of the largest annual cryptocurrency conferences, kicks off in New York.
If history is any indication, cryptocurrencies should see a healthy rally during and after the conference according to data from Fundstrat Global Advisors. The firm says bitcoin has rallied anywhere from 10% to a 69% in previous years.
“Already one of the largest crypto conferences in the world, attendance this year is up dramatically (see below) and coming at a time when Bitcoin/Crypto is down YTD,” the firm said in a note to clients. “Hence, we expect the Consensus rally to be even larger than past years.”
On Monday, bitcoin and ethereum were down more than 3%, while Ripple’s XRP was lower by 2.5%. Bitcoin cash was off 7.2% ahead of its hard-fork on Tuesday that will produce BitcoinABC
This year’s conference is expected to be a full three-times larger than previous years, with 7,000 attendees. It’s not the only conference, either. Dozens of other meetups, conferences and parties are happening throughout New York’s “Blockchain Week.”
Bitcoin has fallen by 37% so far in 2018, bottoming out near $7,000 per token in early February. Fundstrat says this is likely its lowest point for the year.
“The rally post-Consensus has been strong and more supportive of our view that Bitcoin has already bottomed for the year,” said the firm. “In fact, since 2010, the only year when Bitcoin did not bottom before March 31 was 2014,” which was an exception following the Mt. Gox theft.
“In general, we see 2018 being a strong year, but we see the larger and more established blockchains growing in dominance in 2018—hence, better upside for ETH and BTC over the FS CryptoFX indices,” the firm said.
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Source:: Business Insider