Macro Overview of the Cryptoasset market: A Perfect Storm Brewing

The present document is a two-part report on the current state of the cryptoasset market, and examines potential near term catalysts that may impact cryptocurrency prices.

Part 1 is a macro overview of the top-down forces that we see as conducive to the furthering of the
cryptoasset ecosystem, while Part 2 focuses on a bottom-up approach analyzing the state of
the Bitcoin network from a technical standpoint. We believe that approaching the task from both
sides is paramount to a sober and unbiased evaluation of the market’s current state, as well
as in forming a robust understanding of the probability for the space and market outlook for the
remainder of 2019.

We conclude that: (i) the macro environment - driven by Global Central Bank profligacy, currency instability and increasing political tensions, is being complemented by the ever strengthening legitimacy of crypto as an asset class, (ii) the increasingly maturing infrastructure that facilitates institutional capital deployment into the space; and (iii) the virtuous state of the Bitcoin network - driven by the substitution of old HODLers with new, patient capital, the closing of the 2016-2018 market cycle and the continuously improving fundamentals, such as security and liquidity, are collectively setting the stage for true, mainstream adoption of cryptoassets. We continue to believe that Bitcoin will pave the way, and other cryptoassets with strong fundamentals will follow.