By CCN Markets: Speaking to CNBC’s Futures Now, Fundstrat co-founder and head of research Thomas Lee said that considering the momentum of bitcoin, the dominant crypto asset is likely to take out its all-time high very soon. "Well, you know I think bitcoin ultimately becomes…
By CCN Markets: Speaking to CNBC’s Futures Now, Fundstrat co-founder and head of research Thomas Lee said that considering the momentum of bitcoin, the dominant crypto asset is likely to take out its all-time high very soon.
“Well, you know I think bitcoin ultimately becomes a reserve currency in crypto, bitcoin at $9,000 has only been at this level in four percent of its history. We’re deep into a bull market and people are pretty silent about it. I think bitcoin is easily going to take out its all-time high,” said Lee.
Lee’s optimistic projection of bitcoin comes after the asset recorded a 113 percent increase in value since April within a two-month span from $4,310 to $9,200.
Historically, as a highly volatile asset, bitcoin has tended to record most of its gains in a year within a 10-day time frame, as Lee previously explained.
The last time bitcoin price surpassed a fear of missing out (FOMO) level, the asset demonstrated an increase of around 200 to 400 percent against the U.S. dollar.
Lee indicated that $10,000 is considered to be the near term FOMO level for bitcoin and surpassing that level could sustain the strong momentum of the asset throughout the near to medium term, taking the asset to a new record high.
“To be more clear, we looked at past fear of missing out (FOMO) periods; so when does bitcoin trade within three percent of its historical price levels and that was roughly $10,000 for bitcoin. And looking at the past bull cycles, once you breach that FOMO level, bitcoin typically rallies 200 to 400 percent,” Lee told Chepicap at the CryptoCompare Digital Asset Summit 2019.
The general sentiment around the crypto market has noticeably improved in the past week due to the release of the whitepaper of Libra, a crypto asset developed by the Libra Association led by Facebook.
With Facebook planning to integrate Calibra, a crypto wallet that supports Libra, into Facebook Messenger and WhatsApp by 2020, analysts expect Libra to fuel mainstream adoption of digital assets in the upcoming years.
Barry Silbert, the CEO of Digital Currency Group, a leading venture capital company in the crypto sector that operates firms like Grayscale, an investment firm with $2 billion in assets under management, said Libra may become the single biggest catalyst of crypto asset.
“The launch of Facebook’s cryptocurrency will go down in history as the catalyst that propelled digital assets (including bitcoin) to mass global consumer adoption. Will be remembered as just as important — and transformative — as the launch of the Netscape browser. Buckle up,” Silbert said.
Similarly, global markets analyst Alex Krüger has said that Libra is positive for the crypto industry as it would accelerate the usage of digital assets at a global scale.
Libra should be extremely positive for the crypto ecosystem, as it accelerates crypto’s worldwide acceptance and acts as the largest fiat on-ramp thanks to Facebook’s 2.4 billion users. Libra should also be positive for Facebook’s stock, and many people around the world.
As bitcoin sustains its upside momentum and alternative crypto assets benefit off of the momentum of bitcoin, analysts expect the bull market of crypto to last throughout 2019.
According to JPMorgan’s report obtained by Bloomberg, the importance of bitcoin futures has been understated. When fake volumes are removed from the global crypto exchange market, futures markets such as CME account for a large portion of bitcoin volume.
Bakkt’s planned launch in July, which many believe would change the landscape of the bitcoin market, may act as another catalyst for the sector
This article was edited by Samburaj Das.
Last modified: June 20, 2019 9:58 PM UTC