Last week, the interest of the global cryptocurrency community was riveted to the Blockchain Economy 2020 forum in Istanbul (Turkey). Among the speakers of the event, a special response was caused by a half-hour speech by Tom Lee, the founder of Fundstrat.
Tom Lee began his presentation by assessing the impact of digital technology on the future of the financial market. The analyst believes that in the next 20 years we will witness how the financial industry will be radically altered. The key technologies will be cryptocurrency.
Tom Lee is confident that this year will be significant for Bitcoin. First of all, we will observe the wounds of the Bitcoin bull due to the conditions that have developed in the world. Tom Lee also noted:
“Bitcoin loudly announced itself in 2019. In terms of profitability, this asset “surpassed” the S & P 500 (stock index) by 3 times.”
The level of profitability on the US stock market in 2019 exceeded its performance over the past 25 years. But even it can not be compared with the enormous profitability of Bitcoin. Tom Lee identified 5 reasons why the cost of bitcoin in 2020 will skyrocket.
Earlier, the U.S government was wary of bitcoin and took measures that limited its development. But in 2020, the vector of attention of politicians will be replaced by the election race. This will “come in handy” of Bitcoin and become a driver for its value increasing.
The upcoming section of Bitcoin in half provokes an ambiguous reaction among participants in the cryptocurrency market and causes a lot of controversies. With all this, Tom Lee believes that Bitcoin halving will be the decisive reason for the rise in BTC prices.
The analyst notes that the reduction in bitcoins will provoke the emergence of a new situation in the cryptocurrency market when the demand for Bitcoin will exceed the supply by 2 times. This cannot but affect the state of the rate of this digital currency. Tom Lee predicts that under such conditions, the cost of BTC could increase by almost $ 100 billion.
“Now we can buy Bitcoin for almost 10 thousand dollars. If, after halving Bitcoin, half of it will actively develop in the market, a new phase of digital currency growth will begin. In 2020 that Bitcoin has every chance of reaching a record value.”
Cold snap between America and Iran
The geopolitical situation will also significantly affect the Bitcoin exchange rate. We have already witnessed the fact that at the beginning of 2020, a cat “ran through” between the US and Iran in a relationship. Disagreements between countries will trigger a new wave of demand for digital assets to protect financial interests.
200-day moving average
Bitcoin exchange rates have a positive upward trend. In January, Bitcoin exceeded the 200-day moving average. These are excellent indicators for the cryptocurrency market.
“I guess the price of Bitcoin in 2020 can rise to $ 30,000,” – said Tom Lee.
The epidemic has become a real challenge for the whole world and can dramatically affect the financial market. In the context of the spread of the epidemic, entrepreneurs, investors are interested in storing assets in digital format. Thus, the demand for Bitcoin will increase as never before.
Bitcoin vs Dow Jones: who will win?
Tom Lee believes that the Dow Jones index will give way to Bitcoin. Now traditional stock exchanges are experiencing a stage of instability due to the difficult geopolitical situation in the world. In such circumstances, the price of Bitcoin can grow tremendously by the summer of 2020.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.