The crypto space is in a corrective mode. It happens in any trend. What investors want to understand right now, more than ever, is this: what is the long-term trajectory for major cryptocurrencies like Bitcoin?
In other words, was this all a bubble fantasy set for another 90 percent dive like the one we saw after the BTC futures started trading in December 2017? Or is it different this time?
As we try to evaluate this question, one might consider something other than trying the endlessly impossible task of assigning a “fundamental valuation” to Bitcoin.
One key route to evaluating Bitcoin’s long-term prospects of maintaining and growing its value is to measure by the degree to which Wall Street and the corporate world has bought in and is now increasingly tethered to Bitcoin’s fate.
The Investment Trend in Crypto
Last quarter, we saw British fund manager Ruffer Investment Management pile $765 million into bitcoin, JPMorgan said BTC might hit $146k, Tesla nabbed $1.5 billion in BTC, Morgan Stanley jumped to the head of the IB pack and announced its plan to offer Bitcoin fund options, Goldman Sachs reopened its crypto trading desk, and Dan Loeb’s Third Point added Coinbase as a custodian exchange.
All in all, in Q1 2021, data showed that inflows into crypto funds and products hit a record $4.5, according to CoinShares.
Already in Q2, young as it is, we have seen additional significant steps, including UK-based hedge fund Brevan Howard’s new fund to invest in digital assets, Coinbase Global Inc (NASDAQ:COIN) and its direct listing on the Nasdaq at an $86 billion valuation, and MicroStrategy Incorporated (NASDAQ:MSTR) and its jump to 91,579 bitcoins in the coffers.
In other words, Wall Street has figured out how to make money off the crypto bull trend.
The cynical among us might even say that most regulators are former or future Wall Street players and one can stretch a point about incestuous relationships and conflicts of interest. In any case, once something becomes anointed as a profitable asset class, the rules of the game generally evolve to the benefit of bulls.
The Acceptance Trend in Crypto
Another big reason to expect resilience in Bitcoin on pullbacks is another rising trend: Bitcoin acceptance.
In February alone, Mastercard unveiled its plans to support cryptocurrency payments across its network, BNY Mellon announced a new unit aimed at helping clients trade and own cryptocurrencies and other digital assets, the City of Miami voted in favor of a proposal to allow bitcoin to be used to pay city workers and for city residents and businesses to make fee and tax payments with the cryptocurrency, and Canada’s main securities regulator cleared the launch of the Purpose Bitcoin ETF.
In March, Paypal Holdings Inc, (NASDAQ:PYPL) moved to allow U.S. consumers to use their cryptocurrency holdings to pay at millions of its online merchants globally and Tesla said its customers could now buy its electric vehicles with bitcoin.
And already this month, the Swiss arm of French insurer AXA said it would allow its customers to pay for non-life insurance products with bitcoin.
We’ve said it before and we’ll say it again: the core factor underlying the bullish long-term prospects of the crypto space is the network effect – once some major players accept it as currency, others are more likely to do so in response.
It’s a snowball rolling down a snowy hill.
That snowball may ultimately define the fates of stocks like Riot Blockchain Inc (NASDAQ:RIOT), Canaan Inc – ADR (NASDAQ:CAN), and Marathon Patent Group Inc (NASDAQ:MARA).
Prospect: ISW Holdings (OTCMKTS:ISWH)
One stock that potentially sits in an especially good position relative to the long-term trend in the cryptocurrency space is ISW Holdings (OTCMKTS:ISWH), which has made a serious cryptocurrency mining investment over the past year and now has strong and growing mining capacity and equipment deals in the works, with operations in partnership with Bit5ive in Pennsylvania and Georgia.
The company recently signed a partnership agreement with Bit5ive and began designing its POD5IVE datacenter mining pod early last year. That process has come to fruition with the assembly, shipping, and full operational launch of the POD5IVE, which is now actively mining Bitcoin at the Bit5ive renewable energy crypto mining project in Pennsylvania.
The POD5IVE Datacenter mining solution offers next-generation dynamic self-management functionality, plug-and-play operation, virtually non-existent maintenance needs, and an industry best-in-class 1.06 Power Usage Effectiveness score.
If you want to understand more about ISWH, take the time to check out the H. C. Wainwright Cryptocurrency, Blockchain & FinTech Conference, which is being held virtually on Tuesday, April 27, 2021, where ISWH will be a presenting company. The company’s presentation may be accessed online starting at 7:00 am ET on April 27. Presentations will be archived for 90 days.
According to a company release out this morning, Terry Williams, ISW Holdings CEO, addresses the industry and the Company’s plug-and-play resources for mining cryptocurrencies with its Proceso solution. Robert Colazzo, CEO of ISW’s partner, Bit5ive LLC, an official distributor licensee of Bitmain products in Latin America and the Caribbean, talks about the escalation of the Bit5ive project in Georgia.
Alonzo Pierce, ISW Holdings President, discusses the uniqueness of the Company’s project as a comprehensive solution and a new model in the space at the intersection of mining, hosting, infrastructure, and design. And Arnaldo Detres, Director of Crypto Mining and Business Development at Bit5ive, addresses the overall climate as well as the Company’s upcoming presentation on its larger vision as the title sponsor of the Mining Disrupt Conference in Miami in July.
If interested, please listen to the Company’s presentation, or book a one-on-one conversation by registering for the conference at the following link: www.hcwevents.com/crypto.