Fundstrat’s Tom Lee was the primary feature of a week ago’s Blockchain Economy 2020 occasion in Istanbul, Turkey. Making that big appearance on day two, Lee tended to a crypto-wise crowd for about 30 minutes.
Before diving into why Bitcoin (BTC) would see a value climb this year, Lee began his discourse with a gesture to the celebrated correlation between the web and blockchain:
“The most significant generational exchange throughout the following twenty years is going to remain around the disturbance of the money related industry. What’s more, the most significant of these advancements will be blockchain and crypto.”
Those two points are staying put, however picking champs and failures is still troublesome, he noted.
Nevertheless, 2020 will be a good year for Bitcoin’s price, according to Lee. During his keynote, he repeatedly said that the crypto community should be very optimistic in 2020, “as we are now in a proven start of a bull market.” Lee went on to add:
“Bitcoin is the single most performing asset of 2019. It beat the return of the S&P 500, which was the best in almost 25 years.”
The stock market in the United States had its best year in almost an entire generation, and yet Bitcoin tripled that return. On top of that, 2019 was the fourth-worst year in the history of Bitcoin, he added. Lee then listed five reasons why Bitcoin is up for a bull market in 2020.
2020 U.S. elections
Political pressure against Bitcoin is going to be a lot lower in the United States. While Washington essentially killed the Bitcoin rally last year, 2020 elections are going to shift politicians’ focus away, which is good for crypto, Lee explained.
The Bitcoin halving
The most important factor impacting Bitcoin’s price is the halving, according to Lee. “I know there’s controversy — people wonder if Bitcoin halving is going to affect the BTC price. We think it’s going to have a significant effect.”
Backed with a slide from his presentation, Lee noted that demand for Bitcoin in 2020 would probably be higher than it was last year, while supply will drop due to the halving. This imbalance between supply and demand caused by the halving might result in an increase of nearly $100 billion in Bitcoin’s network value, Lee said.
“Bitcoin price is around $10K now, and if this [Bitcoin halving] is going to play out like the other halving periods, there’s a good argument that Bitcoin makes an all-time high this year.”
U.S.–Iran geopolitical tensions
2020 started with strife brewing between the U.S. and Iran, which will affect the Bitcoin price for the rest of the year. Geopolitical risks increase demand for safe haven assets like Bitcoin, Lee argued.
200-day moving average
In January, Bitcoin moved back above its 200-day moving average. “When an asset trades above its 200-day moving average,” explained Lee, “It’s considered to be in a bull market trend. This is especially true for Bitcoin.” The numbers are confirming that this looks a lot like 2012, he added.
“I think there’s even a chance that Bitcoin could end, or touch the level of, somewhere around $30,000 this year.”
Resonating with almost half the crypto industry, Lee believes “the risk of a pandemic such as coronavirus is increasing the demand for Bitcoin and other safe-haven assets.”
Bitcoin to beat Dow Jones?
Lee recently predicted that Bitcoin is going to reach 40,000 points before Dow Jones does, after the latter beat BTC to 30,000, as Cointelegraph reported on Feb. 11. Lee also believes the 200-day moving average is a strong implication for an all-time high by summer 2020.