Saxo Bank’s Bright Outlook for Cryptocurrency in 2018

Saxo Bank’s Positive Vibes

In its latest Quarterly Outlook released on April 18, Saxo Bank has embraced a refreshingly optimistic perspective on the future of cryptocurrency. Analyst Jacob Pouncey, part of the bank’s SaxoStrats team, believes that the market might be on the brink of a new and exciting cycle. He calls this a potential “springboard for a cryptocurrency bull market in Q2.”

Historical Insights: A Look Back

Pouncey’s analysis isn’t just based on gut feelings; he’s referencing historical patterns. He pointed out that blue-chip cryptocurrencies typically gain traction amid global uncertainties, such as Brexit and North Korean missile tests. So if you thought 2022 was wild, just wait until you see how sensitive the market can be to external events!

Institutional Capital: The Wildcard

Part of the optimistic outlook hinges on the increasing inflow of institutional capital into the cryptocurrency ecosystem, thanks to more robust regulations and improved investor protection measures. As Pouncey hints, this influx could propel the crypto markets into a notably positive quarter, contrasting strikingly with the bear market sentiments of Q1.

From Predictions to Reality

Saxo Bank has become something of a crystal ball in the financial realm, especially when it comes to Bitcoin. Back in 2016, when the digital currency was hovering between $450 and $950, experts from Saxo predicted it would skyrocket to $2,100—something that seemed outrageous at the time. In December of 2017, however, they warned that BTC could nosedive to $1,000 before taking it on the chin while maintaining an audacious prediction of $100,000 per Bitcoin by 2019! Who knew financial analysts could have such a flair for theatrics?

A Wave of New Talent

On another note, traditional finance seems eager to mix with crypto’s peers, with Wall Street’s talent pouring into the space lately. For example, recently Coinbase unveiled that hedge fund exec Alesia Haas will be stepping in as CFO. Meanwhile, Blockchain.com has secured the talents of former Goldman Sachs executive Breanne Madigan as the head of institutional sales and strategy. Not to mention the US-based stablecoin project Basis locked in $133 million in funding, proving that while some investors are cautious, others are all too eager to dive in.

The Bottom Line

Ultimately, Pouncey concludes that the prolonged negativity in the crypto markets won’t last forever. “The weak hands have been shaken out,” he states, hinting that the remaining stakeholders are ready to pounce on any good news that surfaces as we move further into 2018. Only time will tell if he’s onto something, but if history is any guide, the landscape of cryptocurrency has a way of surprising its spectators.