Bitcoin continues to trend upward as it prepares to attack the $40,000 range. We believe that the worst of this correction is behind us, but it is still possible that BTC double bottoms. Our outlook remains extremely bullish on the crypto sector for 2022 – we will almost certainly see a powerful altcoin rally this year. Some of the largest gains should be seen in Q2 prior to rate hikes, which could result in a soft stock market. One of the largest announcements this week was President Biden’s upcoming executive order. Even though it is too early to know the specifics of what may be in this order, this is a major win for the crypto space. Over the next few months, we expect the regulation of cryptocurrencies to become a hot button issue within the halls of Congress. In our opinion, this is the beginning of a regulatory framework forming for crypto, and it will allow for new startups to comfortably enter the space without the fear of breaking any federal laws and guidelines.
Our investment philosophy with digital assets is to look for networks that can help solve trillion dollar problems. As of right now, one of our favorite altcoins, XDC, is at extreme support at $0.06. This network helps provide less friction to the trade finance industry and is partnered with major blockchain companies such as R3, SWIFT, and a number of trade financing institutions. Another altcoin with high ROI potential that has been extremely hard is Algorand. Currently trading at $0.98, this is a blockchain network that will allow for developers to create decentralized applications. In addition to its undervalued price, just by holding the crypto you will receive a 6% dividend. What leads us to believe that ALGO will be successful in the long run is it’s ties to MIT, an institution that the current head of the SEC Gary Gensler taught at. We expect The SEC to be dovish when it comes to regulating Algorand.
