Tom Lee, a founder of Fundstrat Global Advisors, shared his opinion about the price of the first cryptocurrency. It turned out to be quite optimistic, let us look at factors that will probably lead Bitcoin to new all-time high records.
In a recent interview with CNBC, Tom Lee said that the so-called crypto winter is over, the market is slowly going back to a bull market. The three most important things that push Bitcoin price up are technical indicators, blockchain, and trading volumes.
Among the three of them, blockchain is the first sign which came in January. Lee’s team detected that trading volumes on the blockchain turned positive year by year. The biggest supporters of such a phenomenon are Venezuela and Turkey, where currency devaluation has occurred.
“Just taking those two countries, they’re close to 30% of the increase in on-chain activity, so it’s meaningful,” he said. “People are saying, ‘Look, I don’t trust using these local currencies. I don’t trust the banks. I’m going to start using bitcoin.’ And that’s what’s causing on-chain volume to really take off.”
Technical indicators may be considered as the second important factor, as in April Bitcoin closed above its 200-day moving average.
The third sign is a Fundstrat survey of over-the-counter brokers. It tells us that the firm’s activity levels went up, based on a number of clients saw a 60% to 70% increase.
All these signs are likely to push Bitcoin price upwards to new all-time highs by 2020. We remind you that Tom Lee believes that the fair rate of Bitcoin now amounts to $14,000. Read the details below:
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