Well, it looks like Tom Lee is back in the news, and when you really think about it, why shouldn’t he be? The year is almost over – we only have about 3.5 months to go before 2020 rings in – and bitcoin has ultimately underperformed and come up short regarding bitcoin bulls’ expectations. Lee, naturally, is claiming that BTC is about to enter a rally. So, is he right or wrong?
Lee: Another Price Bump Is Coming
In an interview with CNBC, Lee comments that the S&P is likely to shoot up by more than 3,000 points by the end of the year, and once this happens, bitcoin will follow suit and become a far less risky asset. He states:
Bitcoin has kind of stalled recently because the macro outlook has stalled. I think in a world without trend, bitcoin doesn’t go up. The next big catalyst, I think, is a decisive breakout in the equity markets because I think once equities break to an all-time high, bitcoin becomes a risk-on asset… If markets make a new all-time high and we see central banks still supportive, it’s kind of good for liquidity, so there’s… liquidity going into bitcoin. More importantly, if there’s an interest in acquiring some volatility, that’s where you’re going to see people buying bitcoin.
Lee has made a consistent name for himself in the crypto market. As a senior analyst at Fundstrat, Lee is always in the background predicting where bitcoin will go, but he hasn’t always been correct. At the end of 2018, when bitcoin was on the verge of dropping by more than 70 percent from its all-time high of nearly $20,000 in 2017, Lee consistently explained that the price was about to spike to that level once again…
It never happened. In fact, bitcoin fell to a new low and sunk to the mid-$3,000 range – the exact opposite of what he had been predicting for nearly a year at that stage. He later explained that he and his company would no longer be making price predictions for bitcoin, stating that they would only be examining trends to see where it would go.
This didn’t last long, however, as earlier in the year, he went so far as to predict that BTC would reach the $40,000 mark by 2020.
The S&P Is Very Important
It’s important to take things like this with a grain of salt and assume that not everything men like Lee say is true. At the same time, he’s very bullish about the S&P, and is confident it can push BTC to new heights. He states:
Bitcoin does best when the S&P’s up more than 15 percent. Bitcoin may be ambidextrous [in] that it works well in a risk-on world, but as you start to get nervous, then you treat it like digital gold.