Bitcoin Easily Going to Take Out $20k, Investors Need to Overload BTC: Tom Lee

  • “We’re deep into a bull market, and people are pretty silent about it” – Bitcoin bull
  • Facebook “very complementary to bitcoin” and a really bullish development
  • Bitcoin has been back in the business since April when it first started pumping. And each month, we get to see new highs of 2019 that take us closer to the all-time high of 2019 at $20,000.

“I think bitcoin is easily going to take out its all-time highs”

of $20,000, and further has the potential to climb to $40,000 if the use cases of the leading cryptocurrency grow, bitcoin bull and Fundstrat Global Advisors’ research chief Tom Lee said Tuesday on CNBC’s Futures Now.

“We’re deep into a bull market, and people are pretty silent about it.”

The world’s largest currency, according to Lee is primed for a Fear of Missing Out (FOMO) rally that would see it as high as $40,000 within a few months, a breach of $10,000 will trigger that FOMO.

A Good Way to get Bitcoin Exposure

This surge, he said could spark even greater return in the Grayscale Bitcoin Trust.

“Bottom line: Crypto winter looks over,”

Lee said.

“Investors need to overweight Bitcoin. And a good way to gain exposure is via GBTC.”

The Grayscale Bitcoin trust GBTC “enjoys a NAV premium because of scarcity,” wrote Lee. Assuming BTC trades in the $20k to $40k range with a net asset value premium of 20 to 60 percent, that gives a target price for the trust of $29 to $63.

“This is substantial upside and suggests it is a good way to get Bitcoin exposure,”

he said.

Till date in 2019, BTC is up 146 percent but according to Lee, this could be just the beginning of its bounce back. However, Lee wrote in his latest note that he felt there was a lack of conviction about the recent rally of bitcoin, based on his attendance at the CryptoCompare Digital Asset Summit in London last week.

Many in the crypto space, Lee wrote were hesitant to agree that crypto winter is actually over, citing worries about persistent volatility in altcoins, fundraising issues, general bearishness, and the residual concerns stemming from the huge drop in crypto prices in 2018.

A Really Bullish Development for Bitcoin

But Facebook's latest move, Lee explains will legitimize the space that could further provide a runway for Bitcoin that could even become a

“reserve currency.”

Bitcoin crossed above the $9,000 level on the weekend ahead of Facebook announcing its own cryptocurrency Libra, that crypto industry experts say is bullish for Bitcoin and the entire crypto market, though it is hardly a blockchain.

“The Facebook announcement is a complete validation that mainstream is now focused on cryptocurrencies. I think it really destroys those arguments that say, ‘I believe in blockchain, not bitcoin,”

he said.

Further elaborating on this, Lee said it is targeted at stablecoin and a new kind of banking system while being

“very complementary to bitcoin. So I think this is actually a really bullish development for bitcoin. I think it’s really bad for stablecoins and anyone who’s been trying to do decentralized finance.”

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