Fundstrat Global Advisors founder Tom Lee has predicted that cryptocurrency prices will hit new historic highs by 2020.
Lee delivered his comments during an interview with CNBC on April 28.
In the interview, Lee forecasted that bitcoin has not completed its upward movement and will likely reach new all-time highs around 2020 based on "11 signs that historically only take place in a bull market." Lee thusly reiterated his previous prognosis made earlier this month, when he said that "a bull market is likely starting."
Lee explained that three out of those 11 signs - blockchain, technical indicators and trading volumes - indicate that the crypto winter has seen its end.
In January, Lee's team observed that trading volumes on the blockchain turned positive at an annual rate, while the second sign popped up in April, when BTC closed above its 200-day moving average.
The third sign, trading volumes, is connected with over-the-counter brokers, who are "Really important in terms of how institutional investors trade crypto." According to Lee, activity levels based on the number of customers increased by 60% to 70%. "I think you're seeing signs that fundamentals are improving, technicals are improving, and now there's real activity by, essentially, crypto hodlers. 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."
Earlier in April, Lee said that the "Bitcoin Misery Index" - which Lee designed with the aim of informing investors of how "Miserable" BTC holders are based on the coin's price and volatility - recently hit its highest figure since June 2016.
He suggested that this could be a mixed signal, also noting that "The main takeaway is that BMI reaching 67 is further evidence the bear market for Bitcoin likely ended at $3,000."
In February, Fundstrat released its 2019 crypto outlook, describing incremental improvements that will purportedly support higher prices for cryptocurrencies.
Fundstrat mentioned that the overall interest in crypto might be stimulated by Binance's recent decision to support credit card crypto purchases, along with the rumors that major companies like Bitfury and Bitmain might consider conducting initial public offerings.
Fundstrat's Tom Lee Predicts New All-Time Highs for Crypto by 2020
gepubliceerd op Apr 29, 2019
by Cointele | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.