Fundstrat’s head of Research Tom Lee, a prominent Bitcoin bull, has recently published a tweet, saying that the current improvement in the performance of the cryptocurrency market is likely to result in a better dynamic here later this year.
He states that three positive convergences will help Bitcoin and other crypto assets prosper in 2020. Those are the Bitcoin halving, geopolitical risks and the 2020 election of the US president (to take place on November 3).
The improved performance of crypto in 2020 is evidence that a better and healthier dynamic is underway this year. In our view, three positive convergences are acting as tailwinds for #bitcoin and other #crypto in 2020 https://t.co/CcmLtr7M8i— Thomas Lee (@fundstrat) January 15, 2020
Bitcoin halving most likely not priced in: Tom Lee
On January 10, Fundstrat published a crypto outlook for 2020 for its clients. The bottom line in it was that since financial markets tend to discount for 1-3 months (6 months maximum), the high probability was, Lee tweeted back then, that the Bitcoin halving expected in May 2020 is not priced in.
As for geopolitical risks, the market already saw such effects after the US initiated a missile attack against Iran recently. Likewise, last year, a Bitcoin price surge happened at the same time as a ‘cold war’ between the US and China broke out regarding tariffs.
In situations like this, investors tend to seek a safe haven and many enter Bitcoin.