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Fundstrat’s Tom Lee Voices Bullish 2019 Prediction After Recent Bitcoin (BTC) Price Surge

  • Alex Dovbnya
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    Bitcoin Investment Trust (GBTC) is trading at 36 percent premium as Bitcoin is prepping to test $4,000


Fundstrat’s Tom Lee Voices Bullish 2019 Prediction After Recent Bitcoin (BTC) Price Surge
Contents

According to Tom Lee, the CEO of Fundstrat, the recent Bitcoin (BTC) price spike made the Bitcoin Investment Trust (GBTC) premium rise to 36 percent. It means that more institutional net buyers are interested in Bitcoin, and it’s yet another reason why 2019 is shaping up to be ‘way better’ for cryptocurrencies than the painful 2018.

The correlation between BTC and GBTC

GBTC, which is offered by Grayscale Investment, appeared the OTC market back in 2015 as the first publicly traded Bitcoin instrument. It gave investors an opportunity to trade Bitcoin on the stock market. Historically, GBTC served as a contrarian indicator for Bitcoin — GBTC inching closer to losing its premium could usually mean that there was another bull run in the offing.  

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On top of that, the GBTC premium has a very mercurial nature as the graph below shows (it would go from zero to 142 percent).
Fundstrat’s Tom Lee Voices Bullish 2019 Prediction After Recent Bitcoin (BTC) Price Surge

Is Lee getting it right this time?

In 2019, Lee’s year-end prediction for Bitcoin was $25,000, but the bull run never happened. Eventually, the Bitcoin uberbull quit making predictions, but it seems like he’s at it again. This time, however, Bitcoin has a much better chance given that a slew of institutional investors are finally taking baby steps towards embracing crypto.

Cover image via u.today
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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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