Bitcoin has already beaten its overall market run of 2019 and is on its way to one of the biggest bull run in recent times.
As per Fundstrat Global Advisors Managing Partner Tom Lee, we can expect a massive bull run for, the world’s largest cryptocurrency by market cap which is currently trading above its 200-day moving average.
Tom Lee also had bullish sentiments as Bitcoin has managed to rise by 30% in the first month of 2020 to nearly $9000.
The latest surge in the price of Bitcoin has come at a time where growing concerns regarding the spread of coronavirus all around the world have completely shaken equities in the USA and other countries. Tom Lee says that this epidemic spread across the world is unexpectedly a good thing for Bitcoin enthusiasts, as the largest cryptocurrency is increasingly being seen as a safe haven asset, and bearing resemblance to digital gold.
Bitcoin could also grow higher due to market volatility and its correlation with the S&P 500 being flipped from positive 13% to negative 10%.
In the latest interview with Yahoo Finance’s YFi PM, Tom Lee said, “These geopolitical events including coronavirus and geopolitical tensions really improve the use case.”
Following the notching of its technical feat of trading above its 200-day moving averages more than a 190% return after eclipsing the technical mark, Lee also stated that Bitcoin has a history of trading high 80% of the time.
Lee further added, “Anyone who’s a trend follower knows when you’re above your 200-day [moving average] you’re back in a bull market, whenever bitcoin breaks back into its 200-day, its average six-month gain is 197%, so we are kind of talking about a levitation taking place.”
The modest 10% gain bitcoin averages when trading below its 200-day moving average would be similar to that average six-month performance, as per the findings of Fundstrat research.
Lee concluded his interview by saying, “It is a good time to look at crypto.”