Bitcoin has been quite interesting this year, making major moves upwards in the face of political crises, and coronavirus outbreak. Now, Thomas Lee, Head of Research at Fundstrat Global Advisors believes the leading cryptocurrency is re-entering a bull market. As such, it is a sign that 2020 is shaping up to be a promising year for the asset. Lee’s comments were made in a tweet on January 29, 2020.
Bitcoin is Re-entering a Bull Market
Per the tweet, Thomas Lee stated that Bitcoin surged above its 200-day moving average on January 27, 2020. And each time BTC is above the 200-day MA, it is usually a sign that it’s re-entering a bull market. Consequently, this move upwards is a positive milestone and confirmation that truly, 2020 is shaping up to be a great year for the asset.
Lee took his analysis one step further when he outlined in a tweet on January 29, 2020, that Bitcoin is the best performing asset class, based on year-to-date performance. According to the Bitcoin bull, the year-to-date performance of the crypto asset shows that it has spiked by over 26%. In contrast, Gold has only leapt by 3% since the start of the year.
Bitcoin’s Use as a Safe Haven Has Impacted on its Price
Furthermore, Lee opined that the use of Bitcoin as a safe haven has impacted its price positively. And Bitcoin is seen as a better safe haven compared to Gold, he added. The latter can be linked to the high adoption of Bitcoin in countries battling political & economic crises, as well as, an epidemic outbreak. A closer look at the chart presented by Lee shows that Bitcoin’s price had surged by 92.2% at the end of 2019, compared to its price at the start of the year. However, Gold had only leapt by 18.3% compared to its 2019 start price.
Asides from analyzing Bitcoin’s chart patterns and historic performance, Lee in an interview with CNBC said: “2020 should be great for Bitcoin”. He also emphasized that the upcoming bitcoin halving will boost the price of the asset. Also, the White House may have succeeded in killing Bitcoin’s rally last year with their opposition; nonetheless, with the 2020 U.S. elections building up, it won’t be on the news, which is bullish for Bitcoin, he added.
Bitcoin, the asset in question, hit a year-to-date high of about $9,400 on January 29, 2020. The asset is priced at $9,296 on Binance cryptocurrency exchange, as at press time. Asides from sentiments around its impending halving influencing its price, its leaps have been tied to the U.S. Iran war as well as the outbreak of Coronavirus in China.