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Fundstrat’s Tom Lee was the primary spotlight of final week’s Blockchain Economic 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 subsequent twenty years goes to face across the disruption of the monetary business. And a very powerful of those applied sciences are going to be blockchain and crypto.”
These two matters are right here to remain, however choosing winners and losers continues to be very tough, he famous.
However, 2020 will likely be a very good yr for Bitcoin’s value, in response to Lee. Throughout his keynote, he repeatedly mentioned that the crypto group 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 only 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 america had its finest yr in virtually a whole 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 towards Bitcoin goes to be lots decrease in america. Whereas Washington primarily killed the Bitcoin rally final yr, 2020 elections are going to shift politicians’ focus away, which is nice 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 marvel if Bitcoin halving goes to have an effect on the BTC value. We expect it’s going to have a big impact.”
Associated: Half of Predictions Are Proper Half the Time — BTC’s Halving Divides Opinions
Backed with a slide from his presentation, Lee famous that demand for Bitcoin in 2020 would most likely 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 lead to a rise of almost $100 billion in Bitcoin’s community worth, Lee mentioned.
“Bitcoin value is round $10Ok now, and if this [Bitcoin halving] goes to play out like the opposite halving intervals, there’s a very good 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 improve demand for protected haven belongings like Bitcoin, Lee argued.
200-day transferring common
In January, Bitcoin moved again above its 200-day transferring common. “When an asset trades above its 200-day transferring common,” defined Lee, “It’s thought of to be in a bull market pattern. That is very true for Bitcoin.” The numbers are confirming that this seems lots like 2012, he added.
“I feel there’s even an opportunity that Bitcoin might finish, or contact the extent of, someplace round $30,000 this yr.”
Coronavirus unfold
Resonating with virtually half the crypto business, Lee believes “the danger of a pandemic equivalent to coronavirus is rising 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 robust implication for an all-time excessive by summer season 2020.
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