Bitcoin Price Could Triple This Year and Beat Dow to $40,000
- Bitcoin can rally very strongly from here – Fundstrat Global Advisor founder Tom Lee
- However, the Dow Jones Industrial Average would be the first one to break the 30,000
Bitcoin is back at $9,780 this week after breaching the $10,000 level over the weekend. However, as we reported the market is still looking at an “aggressively bullish trajectory.”
This was further reinforced by Fundstrat Global Advisor founder Tom Lee who sees Bitcoin shooting up to $27,000 this year.
While talking about the digital asset’s nearly 40% gains in 2020 so far, bitcoin bull explained that a lot of good things have happened with Bitcoin this year.
— Thomas Lee (@fundstrat) February 10, 2020
Bitcoin can rally very strongly from here
Last year, Lee says Washington killed the bitcoin rally but with the 2020 elections it’s sort of in the purview Washington and “bitcoin can rally very strongly from here,” he said.
He further talked about the deadly coronavirus risk and geopolitical tensions that would work as tailwinds for Bitcoin’s push to a new peak.
Not to forget that we are about three months away from the historically bullish event, bitcoin reward halving would result in the production of 900 BTC daily instead of the current 1,800 bitcoins. Cutting down the reward from 12.5 to 6.25 coins, this event would result in the digital asset inflation rate from 3.27% to 1.80%.
The digital asset would break into a new ATH this year
Additionally, just two weeks ago, we broke above the 200-day moving average, which means we are back in a bull market. Historically, on average, this breakout has resulted in six months gains of about 190%.
According to this, we would break into a new all-time high sometime this year that could be around $27,000-$30,000.
CT however, was quick to point out Lee’s prediction from early 2018 when he forecasted bitcoin price to jump to $91,000 by March 2020.
However, this time Lee believes the Dow Jones Industrial Average would be the first one to break the 30,000, though Bitcoin would be the one to hit $40,000, he said.
The stock market continues to hit new highs while gold’s calm
S&P 500 and Nasdaq already closed to new closing highs on Monday. This had S&P500’s year-to-date gains at 3.7% while Nasdaq’s 7.3%.
These gains on Monday were brought by a jump in Amazon shares, and big gains experienced by Microsoft and Boeing, helping investors shrug off concerns over coronavirus. The Dow was also up 0.3%.
— Mark W. Yusko (@MarkYusko) February 10, 2020
Gold meanwhile skid on positive commentary from the US Federal Reserve that said the US economy slowed last year on weak global growth but key risks have recorded with the likelihood of a recession decline. The Fed, however, did recognize the possible risk of the economic downturn due to the fallout from the coronavirus outbreak.