Bitcoin, the most popular cryptocurrency, could rise by 100% this year due to geopolitical tensions and the US Presidential Elections, Fundstrat’s lead analyst Tom Lee wrote in the firm’s recently published 2020 crypto outlook.
We published our 2020 Crypto outlook and made the full report available for our clients.
– bottom line: financial markets tend to discount 1-3 months, and maybe 6 months (max). So highest probability is halvening not priced in
— Thomas Lee (@fundstrat) January 10, 2020
Lee is betting on an increased usage of the cryptocurrency as a haven asset. Bitcoin did benefit from the recent US-Iran tensions and closely tracked the action in gold, convincing renowned analysts like Ran NeuNer that the largest digital currency is now a safe haven asset.
Whereas I would have preferred the BTC price to continue climbing , watching Bitcoin and Gold move down together on Trumps speech cemented the fact that investors are truly moving into Bitcoin as a safe haven from political events. No investor can deny this any longer.
— Ran NeuNer (@cryptomanran) January 8, 2020
Fundstrat’s Lee also expects bitcoin to continue gaining ground in the months leading up to the reward halving. The process due in May will reduce rewards per block mined by half.
Bitcoin has shown signs of life over the last couple of weeks. The cryptocurrency is currently priced at $8,118 on BitcoinPrice.com – up more than 25.8% from the low of $6,450 reached in mid-December.
Prominent chart analysts are increasingly getting bullish with charts flashing major bullish reversal patterns like the inverse head-and-shoulders breakout.
However, a few analysts like Jason Williams, co-founder at digital asset fund Morgan Creek Digital, think halving has been priced in and could be a non-event for markets.
Unpopular Opinion –
Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.
— Jason A. Williams 🦍 (@JWilliamsFstmed) December 1, 2019