Tom Lee thinks that 2020 will be a big year for Bitcoin, as he claims that that ‘crypto winter’ may now be over
Fundstrat’s head of research Thomas Lee has taken to Twitter to outline the 14 reasons why he believes the bear market in crypto is over. As entry number 14 on the list, Lee retweeted bullish stats posted by BitMEX CEO Arthur Hayes and claimed: “Confirmed – Crypto winter over.” The regular Bitcoin analyst said that high liquidity exchanges like BitMEX “have insights into the positioning and behavior of crypto investors” and that the firm’s “large trading share + popularity with leveraged traders” means that the CEO may not be lying when he says that “the bull market is real”. Exchanges have insights into the positioning and behavior of crypto investors, and @BitMEXdotcom large trading share + popularity with leveraged traders
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·Coin RivetCrypto and Bitcoin bull, Tom Lee has made his case that the crypto bull market may be back in town as he declares that “winter” is now over.
Speaking on CNBC’s fast money, he said: “last year was a terrible year for crypto, a massive bear market, and we published a piece this week just highlighting 11 signs that historically only take place in a bull market”.
I think it’s a positive sign that @CNBCFuturesNow is discussing $BTC and #crypto… https://t.co/yQOzcm32qi
— Thomas Lee (@fundstrat) April 25, 2019
He continued to make his case by professing that he thinks, ” the evidence is [now] mounting that there’s a bull market.” He thinks that Bitcoin’s not done climbing and that there are catalysts “likely” to drive it to new all-time highs “around 2020″.
Tom may well be right. Just last week, Coin Rivet covered the story of how the number of confirmed Bitcoin transactions per day hit its highest level since the last bull run.
Number of confirmed Bitcoin transactions per day hits highest level since last bull run
By Nawaz Sulemanji – April 30, 2019
Correlation with the S&P
Tom said that “one thing to keep in mind is whenever the S&P has made a big move, it’s almost always led to a big move in crypto later in the year”.
“So I think a 2.5 standard deviation move for Bitcoin would take it to $14,000. I’m not saying that’s where it’s going to go, but that’s the magnitude of move that would be a catch-up.”
Lee also said that one of the big things helping Bitcoin right now is increased usage in places like Turkey and Venezuela. Just recently, the Turkish central bank burned through its foreign reserve holdings to the tune of $10 billion in an attempt to support the price and dollar-based peg of its national fiat currency the lira.
He made the point that if you just take “those two countries, they’re close to 30 percent of the increase in on-chain activity, so that’s meaningful. People are saying, ‘Look, I don’t trust using these local currencies. I don’t trust the banks. I’m going to start using Bitcoin’ and that’s what’s causing on-chain volume to really take off”.
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