Fundstrat’s Tom Lee was the primary spotlight of final week’s Blockchain Financial system 2020 occasion in Istanbul, Turkey. Taking the stage on d
Fundstrat’s Tom Lee was the primary spotlight of final week’s Blockchain Financial system 2020 occasion in Istanbul, Turkey. Taking the stage on day two, Lee addressed a crypto-savvy viewers for about half an hour.
Earlier than delving into why Bitcoin (BTC) would see a value hike this yr, Lee began his speech with a nod to the well-known comparability between the web and blockchain:
“Crucial generational commerce over the following twenty years goes to face across the disruption of the monetary trade. And crucial of those applied sciences are going to be blockchain and crypto.”
These two matters are right here to remain, however selecting winners and losers continues to be very tough, he famous.
Nonetheless, 2020 shall be an excellent yr for Bitcoin’s value, in response to Lee. Throughout his keynote, he repeatedly stated that the crypto neighborhood must be very optimistic in 2020, “as we are actually in a confirmed begin of a bull market.” Lee went on so as to add:
“Bitcoin is the one most performing asset of 2019. It beat the return of the S&P 500, which was the very best in virtually 25 years.”
The inventory market in the USA had its finest yr in virtually a complete technology, and but Bitcoin tripled that return. On high of that, 2019 was the fourth-worst yr within the historical past of Bitcoin, he added. Lee then listed 5 explanation why Bitcoin is up for a bull market in 2020.
2020 U.S. elections
Political stress in opposition to Bitcoin goes to be lots decrease in the USA. Whereas Washington primarily killed the Bitcoin rally final yr, 2020 elections are going to shift politicians’ focus away, which is sweet for crypto, Lee defined.
The Bitcoin halving
Crucial issue impacting Bitcoin’s value is the halving, in response to Lee. “I do know there’s controversy — individuals surprise if Bitcoin halving goes to have an effect on the BTC value. We predict it’s going to have a big impact.”
Associated: Half of Predictions Are Right Half the Time — BTC’s Halving Divides Opinions
Backed with a slide from his presentation, Lee famous that demand for Bitcoin in 2020 would in all probability be increased than it was final yr, whereas provide will drop as a result of halving. This imbalance between provide and demand attributable to the halving would possibly end in a rise of practically $100 billion in Bitcoin’s community worth, Lee stated.
“Bitcoin value is round $10Ok now, and if this [Bitcoin halving] goes to play out like the opposite halving durations, there’s an excellent argument that Bitcoin makes an all-time excessive this yr.”
U.S.–Iran geopolitical tensions
2020 began with strife brewing between the U.S. and Iran, which can have an effect on the Bitcoin value for the remainder of the yr. Geopolitical dangers enhance demand for protected haven belongings like Bitcoin, Lee argued.
200-day transferring common
In January, Bitcoin moved back above its 200-day transferring common. “When an asset trades above its 200-day transferring common,” defined Lee, “It’s thought-about to be in a bull market development. That is very true for Bitcoin.” The numbers are confirming that this seems lots like 2012, he added.
“I believe there’s even an opportunity that Bitcoin may finish, or contact the extent of, someplace round $30,000 this yr.”
Coronavirus unfold
Resonating with virtually half the crypto trade, Lee believes “the chance of a pandemic resembling coronavirus is growing the demand for Bitcoin and different safe-haven belongings.”
Bitcoin to beat Dow Jones?
Lee not too long ago predicted that Bitcoin goes to achieve 40,000 factors earlier than Dow Jones does, after the latter beat BTC to 30,000, as Cointelegraph reported on Feb. 11. Lee additionally believes the 200-day transferring common is a powerful implication for an all-time excessive by summer season 2020.