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Fundstrat’s Managing Partner and the Head of Research Tom Lee – an outspoken Bitcoin bull – has been mum on the cryptocurrency market for much of the last year.
However, Lee has finally started making comments about the crypto space once again, and is now calling for 100% returns in Bitcoin this year on the heels of the 2020 United States Presidential election, the crypto asset’s upcoming halving, and increase geopolitical risk across the entire globe. Will Lee’s least lofty prediction yet come true?
Bitcoin To Gain 100% In 2020 Following Geo Risk, Election, and Halving
Throughout 2018, Fundstrat Co-Founder and Head of Research Tom Lee made a number of wild Bitcoin calls, earning him a reputation for missing his mark most of the time. It got to the point where Lee would regularly be asked for a new price prediction by every journalist he spoke to, prompting him to pull back on his predictions and instead let the market do its thing.
Related Reading | Psychology of a Market Cycle: Are Bitcoin Investors In Denial?
After spending most of 2019 quiet as a mouse, Lee this morning tweeted about the improving “healthier dynamic” across the crypto space fueling the recent rise. However, given rumors that many of this week’s pumps were orchestrated by wealthy miners, whales, and more, it’s difficult to say the crypto market’s dynamic has become healthy.
The improved performance of crypto in 2020 is evidence that a better and healthier dynamic is underway this year. In our view, three positive convergences are acting as tailwinds for #bitcoin and other #crypto in 2020 https://t.co/CcmLtr7M8i
— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) January 15, 2020
Lee’s other reasoning for why the crypto market may surge and Bitcoin will go on to set over 100% gains hold a lot more weight.
The Fundstrat Managing Partner claims that crypto will shine largely in part to increase geopolitical risk – notably a potential war looming between the United States and Iran, and the fact that nearly all global economies are hanging by a thread, printing money to only further put off an inevitable market collapse.
Cryptocurrencies like Bitcoin were designed to offer many attributes that make it more appealing as an asset during times of global economic turmoil. Banks are unable to print more of these crypto-assets, providing a deflationary aspect to them that should not be undervalued.
Lee also points to the upcoming 2020 Presidential election in the United States – a race that is sure to shake up markets as the current President Donald Trump has plenty of skeletons in his closet just waiting to come out.
Related Reading | Only 120 Days Remain Until Bitcoin’s Halving; Here’s What to Expect
Lastly, Lee cites Bitcoin’s upcoming halving this May as a catalyst to drive further growth. Come May, Bitcoin’s block reward miners receive for keeping the network functional and operational will be slashed in half, causing less selling to hit the market and keep prices rising.
Only time will tell if Lee’s latest calls are accurate, but for the first time in a long time, the calls are almost too modest, considering how powerful Bitcoin’s rallies can be.
