Although the market isn’t performing the all-time high figures, famous analyst, Thomas Lee believes this is the end of crypto winter. Nevertheless, he thinks ‘Bitcoin is back’ and predicts the next Bull Run by next year, 2020.
Crypto Winter is Over
In the latest talk with CNBC, Lee, who is the managing partner and head of research at Fundstart Global advisors reports that the BTC value going higher and assume that it is already in a bull market. He says;
“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. So I think the evidence is mounting that there’s a bull market,”
Nevertheless, in an earlier response to Barry Silbert’s tweet of Grayscale highest week fund, Lee says that the year 2019 is way better than 2018. He thinks that more and more institutional investors are hitting the crypto space which is yet another sign to bid higher on Bitcoin this year as compared to the bearish crypto sentiments in the past year.
He moreover hints to what he calls ’11 signs’ as the evidence to end of Crypto winter. Lee calculates it with the relation of bitcoin with blockchain, technical indicators, and trading volumes.
Bull to Begin Soon
January – Lee present increasing trading volumes on the blockchain among countries like Venezuela and Turkey – in addition, their own cryptocurrencies being used as an alternative to bitcoin as first evidence. Adding that these two countries are somewhat closer to 30% of the increase in on-chain activity, he says ‘it is meaningful’. He goes on stating;
“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 the on-chain volume to really take off.”
April – He sees April as the second sign towards bull market – to note, this is the month when bitcoin kick-started wit $5000 figure again (consistently). He said that, in April, Bitcoin’s technical indicator showed it was closed above its 200 –day moving average and which is also uptick the rally.
And the final sign that Lee says ‘Over-the-counter brokers’ wherein the involvement of more institutional investors in the crypto market can be seen. These people are generally the holders and not necessarily those traders who buy, sell and trade the assets. According to Lee’s Team survey,
“I think you’re seeing signs that fundamentals are improving, technicals are improving, and now there’s real activity by, essentially, crypto holders,”
Adding other signs to his bitcoin bullish book, Lee says that bitcoin will climb even higher and thus the sign denotes the end of crypto winter. Moreover, talking about the S&P 500 in relation to Bitcoin, Lee believes the cryptocurrency’s standards deviation from the S&P 500. Meantime, he also highlights what could possibly be this time is ‘S&P 500’s big move influence the big move in Crypto’. In his words;
“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,” Lee said. “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.”
Do you agree with Lee’s prediction on Bitcoin.? Let us know in the comment below.