Tuesday, July 14, 2020

Tom Lee Says Bitcoin Will Hit $10,000 Before 2019’s End

Tom Lee may have promised us not to predict Bitcoin’s price again, but it seems the Fundstrat Global Advisors co-founder can’t seem to stay away from the controversial market. He has made several comments about Bitcoin’s performance this year and of recent, predicted that Bitcoin will spike to $10,000 before 2019’s end.

Tom Lee’s Recent Prediction is Less Bullish About Bitcoin

Tom Lee’s recent prediction may be a cold one and not entirely bullish in comparison to 2018. At that time, the Bitcoin enthusiast was confident that Bitcoin will hit a whole $25,000 before the year’s end. However, given the current market performance, predictions have changed. This time around, he believes Bitcoin will reach $10,000 even before the year is over.

Lee while speaking to MarketWatch attributed his forecast to investors’ positive risk appetite for Bitcoin. According to him:

If the S&P 500 made a 2.5 standard deviation move [as it has done year-to-date] and investors are looking for vol [volatility] that’s building a base case for bitcoin.

Tom Lee Makes Reference to His Bitcoin Misery index

On April 11, Tom Lee also made reference to his Bitcoin Misery Index (BMI) which estimates how miserable investors are. It uses Bitcoin’s current price and its volatility to ascertain the BMI value. That being the case, Lee outlined that the current BMI value is 89 out of a possible 100. A value around 0 denotes a dejected misery while that of 100 means happy.

The co-founder further outlined that at a BMI of 89, it is both a good and a bad thing. It is a good thing because a BMI greater than 67 is only seen during the bull markets. It is, therefore, evidence that the bull market is onset and the bearish market ended at around the $3,000 price level.

Bitcoin’s Recent Surge Was Triggered by a Number of Events

On April 4, while in an interview with CNBC, Tom Lee said the recent surge in Bitcoin’s price was triggered by a number of events. Among these, are old whale wallets who are the original owners of Bitcoin began to accumulate the digital currency slow and steady. He also said the spike could be pinned on countries like Turkey who have come to rely on Bitcoin in the face of inflation.

BTCNN on March 16 also informed of Tom Lee’s statement that Bitcoin’s bull market will return in August. In his opinion, between five to six months from now, a pace will be set which will lead to the bull market this year.

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