Bitcoin fund Adamant Capital is convinced that the bottom of the bear market is in, and true to its name, the firm has laid out an unwavering case for this position with some persuasive hard data and fundamental analysis.The report, authored by Adamant founders Tuur Demeester and Michiel Lescrauwaet, argues that bitcoin is undervalued at its current price, mirroring sentiments held in Adamant’s 2012 and 2015 reports during bitcoin’s previous downtrends. Weak hands were shaken out in November of 2018, it says, and this capitulation has laid the groundwork for the next market cycle.As such, its underlying thesis is that bitcoin has entered the accumulation phase of the bear market — the first stage of a bull market when forward-thinking investors begin loading up in preparation for the next run.How Do They Know?As the disclosure in the report cautions, Adamant Capital is not an oracle and its research isn’t a crystal ball, so it should go without saying that neither the firm nor anyone else knows for sure what bitcoin will do tomorrow or the next day or a year from now. That said, the firm lays out a convincing argument that we’ve experienced the worst of this bear market’s carnage.In fact, it believes that overall sentiment has morphed from despair to hope. To support this claim, Adamant plotted bitcoin’s booms and busts using unrealized profits and unrealized losses. This metric is derived by taking the value of each bitcoin...
