Fundstrat's co-founder Tom Lee is certain that Bitcoin (BTC) might extend its January gains. In fact, he believes that the top cryptocurrency could surge by nearly 200 percent in the next six months.
Lee expects Bitcoin to levitate
In his latest interview with Yahoo! Finance, Lee pointed out that Bitcoin broke above its 200-day moving average (DMA). Historically, BTC would bring its investors stellar returns after each such occasion.
"Whenever bitcoin breaks back into its 200-day, its average six-month gain is 197%, so we’re sort of talking about a levitation taking place."
Earlier, Fundstrat estimated that Bitcoin's win rate increases to an impressive 80 percent when it is trading above the widely-tracked average.
An unlikely safe haven
Lee also reiterated that he expects Bitcoin to generate much higher returns in 2020 because of geopolitical events. The latest example could be the coronavirus epidemic, which is believed to have fueled Bitcoin's price rally in late January.
“These geopolitical events including coronavirus and geopolitical tensions really improve the use case.”