There’s an ongoing debate in the crypto community regarding the May 2020 bitcoin halving. Many are claiming that the bullish catalyst is already priced in. In other words, market participants who are expecting a sharp rise in bitcoin’s value once the halving occurs would be disappointed.
However, some heavy hitters believe that the halving is far from being priced in. One personality thinking along this line is Fundstrat founder Thomas Lee. The widely followed market analyst took to Twitter to share Fundstrat’s 2020 Crypto Outlook. The firm reveals that the cryptocurrency is poised to print gains of over 100 percent this year.
The top cryptocurrency rewarded investors with handsome gains of 92 percent in 2019. This year, Fundstrat predicts that the king of cryptocurrencies will perform even better. According to the firm’s 2020 Crypto Outlook report, there are three key factors that can act as bullish catalysts for the cryptocurrency.
The first one is geopolitical risks. Earlier this month, bitcoin’s value soared as the conflict between the U.S. and Iran escalated. Further tensions in the region on top of the trade war between the U.S. and China will likely cement bitcoin’s narrative as a safe-haven asset.
The second factor is the 2020 U.S. election. The uncertainty in the outcome of the election might push big money investors to hedge with bitcoin. This would strengthen the cryptocurrency’s use-case as digital gold.
Lastly, Fundstrat believes that the 2020 halving is not yet priced in. This catalysts alone should be enough to send the dominant cryptocurrency skyrocketing as seen in past performances.
Fundstrat believes that the occurrence of these three events will push bitcoin to gains greater than 100 percent. This would put the cryptocurrency in a strong position to become the best performing asset for the second year in a row.
Other analysts are also bullish on the orange coin as they look forward to the halving in May. For instance, Crypto Godfather believes that the bear market is coming to an end and bitcoin will once again ascend to $20,000.
Crypto Godfather is not the only analyst who thinks that bitcoin will recapture $20,000. The bullish Bitcoin Macro claims that the halving would only be priced in once bitcoin breaches $20,000.
We are still expecting a move to all-time highs, but if [the] $7,600 level is breached on the downside, then I think we see a swift move below $6,400 to make our final low.
The seasoned trader added,
From there, we would then have the rally to new all-time highs we have been looking for.
So far, bitcoin bulls have held support of $7,600, and the crypto is now trading above $8,000. As the digital gold continues to show signs of strength, it is becoming difficult to dismiss the bullish claims of Thomas Lee and other analysts. Looks like 2020 will be an exciting year for bitcoin hodlers.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Last modified: January 22, 2020 11:39 PM UTC