Crypto and Bitcoin bull, Tom Lee has made his case that the crypto bull market may be back in town as he declares that “winter” is now over.
Speaking on CNBC’s fast money, he said: “last year was a terrible year for crypto, a massive bear market, and we published a piece this week just highlighting 11 signs that historically only take place in a bull market”.
— Thomas Lee (@fundstrat) April 25, 2019
He continued to make his case by professing that he thinks, ” the evidence is [now] mounting that there’s a bull market.” He thinks that Bitcoin’s not done climbing and that there are catalysts “likely” to drive it to new all-time highs “around 2020″.
Tom may well be right. Just last week, Coin Rivet covered the story of how the number of confirmed Bitcoin transactions per day hit its highest level since the last bull run.
Correlation with the S&P
Tom said that “one thing to keep in mind is whenever the S&P has made a big move, it’s almost always led to a big move in crypto later in the year”.
“So I think a 2.5 standard deviation move for Bitcoin would take it to $14,000. I’m not saying that’s where it’s going to go, but that’s the magnitude of move that would be a catch-up.”
Lee also said that one of the big things helping Bitcoin right now is increased usage in places like Turkey and Venezuela. Just recently, the Turkish central bank burned through its foreign reserve holdings to the tune of $10 billion in an attempt to support the price and dollar-based peg of its national fiat currency the lira.
He made the point that if you just take “those two countries, they’re close to 30 percent of the increase in on-chain activity, so that’s meaningful. People are saying, ‘Look, I don’t trust using these local currencies. I don’t trust the banks. I’m going to start using Bitcoin’ and that’s what’s causing on-chain volume to really take off”.