Fundstrat Co-Founder Thomas Lee thinks Bitcoin will reach a new all-time high in 12 to 18 months. In an opinion piece written forCityAM, Lee says that the crypto spring has begun.
Lee lists a number of positive things happening in the space right now, as it is not only the technicals that are looking bright. ‘ICO funding has dwindled to effectively zero, so the ‘get rich quick scams’ are largely gone. In 2020 the next Bitcoin halvening will take place, which will half Bitcoin block rewards from 12.5 Bitcoins to 6.25 Bitcoins per block mined. This will reduce the daily supply of Bitcoin coming into the market from $9mm today to $4.5 million. That is a massive drop coming soon.’
The fact that Bitcoin is moving above the 200D moving average is also an extremely bullish sign, Lee says. ‘I have followed markets for 25 years, so this simple rule of thumb works on any stock, asset, bond, etc. Anytime an instrument is above its 200D, it is considered to be in ‘positive trend’. Bitcoin rossed above its 200-day on April 1, 2019, the first such positive close since March 2018 (13 months). A report Fundstrat (my firm) published last year shows that Bitcoin has an average 6-month gain of 193% when it’s above its 200D and a mere 13% when it is below. Therefore, crossing the 200D is a big deal.’
‘Bottom line, the evidence is strong that crypto winter is over’, Lee continues, further saying that ‘crypto spring has begun, even in the face of mass skepticism. ‘What does this mean for price action? We think prices have bottomed, and within the next 12-18 months we should be seeing new highs for Bitcoin and other useful tokens.’Read the full story by Thomas Lee on page 24 and 25 of City AM.
Lee earlier this week recommended people to HOLD Bitcoin in this rally. Lee calculated that if you are not in Bitcoin during its best 10 days of the year, your BTC investment would be down 25% annually.
Bitcoin crossed the $8000 mark earlier today, following a big news day with Bakkt announcing its launch in July, eBay flirting with cryptocurrencies, WholeFoods starting to accept four different cryptocurrencies, and Microsoft building on the Bitcoin blockchain.
Next weekend, Bitcoin is rumored to have a segment on 60 Minutes, introducing BTC to the mainstream yet again.
But hope it’s not a negative expose like the ‘Audi sudden acceleration’ or ‘Ford Pinto blowing up’ type, focusing on scams etc.
— Thomas Lee (@fundstrat) May 14, 2019