What an exciting start to the year for investors in cryptocurrency and traditional assets alike. I am immediately reminded of the Chinese fortune that can be simultaneously interpreted as both a curse and a blessing: “May you live in interesting times.” Indeed!
Stumbling into spring like a drunken adolescent, Bitcoin and its fellow cryptocurrency troublemakers have kept us entertained and well fed so far in 2020 with our flagship fund Blockchain Momentum up as much as 60% at one point this year before pulling back in the last several days.
In Bitcoin’s case, January sparked a rally of over 40% for the world’s most popular cryptocurrency. Life rushed back into nearly all blockchain technology projects, with marquee protocols like Ethereum and Ripple doubling within a 5-week span. It seems safe to say, that after 26 long months, we can finally close the door on the crypto bear market of 2018-2019.
A View of Viral Volatility
Traditional and cryptocurrency markets witnessed disruption recently, with investors concerned about the impact on the global economy due to the Coronavirus. Bitcoin did not respond as a safe haven asset as some had hoped, falling 15% (about in line with global equity markets).
Bull Market Brewing
However, there are positive fundamental signs for the cryptocurrency markets that should be considered with active bitcoin wallets reaching all-time highs and global trend search interest in Bitcoin peaking this month at levels similar to those in June of 2019 when Bitcoin reached $13,890.
There are reasons to be optimistic as Bitcoin’s growth continues to boom around the world. Too many countries to count have now passed clear cryptocurrency regulations and are seeing their private sectors incorporate blockchain technology-powered cryptocurrency solutions into their business plans.
A Step Toward Crypto Regulatory Clarity
This pro-active approach is still not visible in the United States, not yet anyway. However, it appears that the United States will deliver on cryptocurrency regulations in the not-too-distant future.
Cryptocurrency Act of 2020
While presidential hopefuls like Mike Bloomberg have outlined thoughtful cryptocurrency regulation, it seems that we might not need to wait for a new administration for US cryptocurrency guidelines. Recently, several pieces of cryptocurrency regulation have been proposed to both houses of Congress, the most viable of which appears to be from Congressman Paul Gosar R-Arizona.
We love that this proposed legislation does not create any new government, but instead assigns Tokens into three broad categories, assigning an existing regulatory body for oversight. The “business side” of the crypto community wholeheartedly embraces these regulatory proposals coming from Congress.
We are ready to shed crypto’s infamous “bad-boy” image and welcome in a new era of “Crypto Clarity”. #cryptoclarity #sarsonfunds ￼ We believe that 2020 has more positive moments ahead for crypto investors!
John Sarson and the Sarson Funds Team
Disclosures: Not investment advice. It should be assumed that Sarson Funds or its affiliated managers hold positions in all projects that are discussed. It is not possible to invest in any project directly through Sarson Funds, Inc. or its affiliated managers. Any investment product offered by managers affiliated with Sarson Funds should be assumed to be only available to Accredited Investors and subject to the individual terms and conditions of that offering including but not limited to those eligibility requirements associated with U.S. Securities Regulation D, section 506c. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at email@example.com