The co-founder of Fundstrat Global Advisors, Tom Lee, is as bullish as ever regarding Bitcoin. In fact, Lee believes that Bitcoin will beat the Dow Jones Industrial Average to 40,000. This comes as Bitcoin is trading at $10,125, and the Dow is trading at 29,280 points.
Will Bitcoin rally by nearly 200%?
These comments came in a recent interview with the CNBC segment Power Lunch. In it, Lee says that he “would not pick the Dow” as a long-term investment. Rather, he would pick Bitcoin. This comes as the Dow is nearing the 30,000 point line – an all-time high for the index.
In response to a question over whether Bitcoin could hit $30,000 before the Dow hits 30,000, Lee said Bitcoin’s chances are slim. The race to $40,000, however, is a different story altogether.
“My guess would be Dow [is the first to 30,000], but if I had to say what is first to 40,000, I would… I would not pick the Dow.”
The host of CNBC’s Power Lunch, Kelly Evans, later wrote Lee had in fact said that he believes Bitcoin will triple this year. What’s more, her tweet also clarifies that Lee believes Bitcoin will reach $40,000 before the Dow reaches 40,000.
Moreover, Bitcoin has once again broken through the $10,000 line. This comes after a brief price drop of nearly $300 that brought the price of Bitcoin back to $9,000 levels in just seconds.
Lee: “All-time highs sometime this year”
What’s more, Lee also points towards the growing number of bullish signs for Bitcoin. Recent reports already recount a myriad of bullish technical indicators pointing towards an upcoming bull run. As many other observers do, Lee points towards the looming Bitcoin halving as a key bullish milestone.
“A lot of good things have happened with Bitcoin this year. One is the [Bitcoin] halving is happening in May. But we broke above the 200-day [moving average] – so back in a bull market. There is the corona[virus] risk and geo-political tension…”
Additionally, Lee also notes that he views US regulation as significantly detrimental to Bitcoin’s price performance. Nevertheless, Lee notes that he believes this will go away during 2020.
“Last year, I think Washington killed the Bitcoin rally. But with the elections, it’s sort of not in the purview of Washington. So I think Bitcoin could rally very strongly from here.”
This is especially interesting seeing as President Donald Trump’s 2021 budget proposal seeks to crack down on crypto crimes. Additionally, Lee also states that an upcoming Bitcoin rally could be quite substantial. According to Lee, this comes from Bitcoin soon breaking past its 200-day moving average price:
“When Bitcoin breaks above its 200-day, which it did about two weeks ago, its average six-month gain is about 190%. So this would point to all-time highs sometime this year.”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.