On Tuesday (February 4), Thomas Lee, Co-Founder, Managing Partner, and Head of Research at independent research boutique Fundstrat Global Advisors, explained during an interview with Yahoo Finance why his company is "really optimistic on crypto and Bitcoin this year."
During this interview, Lee was asked by reporter Yahoo Finance reporter Emily McCormick what is next for Bitcoin.
Lee started by saying:
"So we're really optimistic on crypto and Bitcoin this year. You know, last year, Bitcoin was up almost 90% -- so the best performing asset class by a factor of three, and we think the return this year will be even stronger because you have some catalysts. You know, the halvening, which is upcoming... I think ... coronavirus and geopolitical tensions really improve the use case..."
He then went on to add:
"Enough times past where that post the starvation of capital like the space has not really seen any capital inflows... Only good projects are surviving now. So, there's actually a lot of interest in looking at what's still alive because these things actually have real progress and fundamental values. So ,I think it's a good time to look at crypto."
Lee then mentioned that although it is interesting that January was a great month for Bitcoin ("up 26%), what is perhaps even more noteworthy is that during that month Bitcoin also "recovered its 200-day moving average", which he considers "a big deal" since (according to technical analysis) this means that Bitcoin is "back in the bull market."
Finally, Lee came up with this price prediction for Bitcoin:
"Whenever Bitcoin breaks back into its 200-day, its average six-month gaini s 197%. So, we're sort of talking about potentially a levitation taking place."
