CEO of Fundstrat Global, Thomas Lee recently expressed a positive opinion on the price of Bitcoin. The analysts of the New York based research company released an outlook on Feb 8 expressing increments in cryptocurrencies prices. The optimism was a result of a sudden influx on the buying side on Feb 8.
Fundstrat’s Bitcoin Optimism
In a recent tweet, the co-founder of Fundstrat, Tom Lee explained why the market could go from bearish to bullish for cryptocurrencies. He tweeted about a study that traces key market tendencies since 2017,
CRYPTO: we published our 2019 crypto outlook this am. Positive incremental developments coming. First paragraph below. pic.twitter.com/JkkBEvRmxl
— Thomas Lee (@fundstrat) February 8, 2019
In 2018 December, the strategist and Wall Street analyst announced that he would not be making any predictions about Bitcoin. However, Fundstrat believes that the cryptocurrency prices will recover and the the situation will certainly change. As per a report, the analysts stated that the negative headwinds such as adverse regulations, hype of cryptocurrency and ICO post hangover have reversed some crypto achievements. Therefore, the year felt like a ‘morning after sobering’.
Why the Optimism?
A number normal of macro, fiat to crypto inflows, technical, equity and blockchain trends laid out by Fundstrat, explain improvements in crypotcurrencies over 2019. Firstly, it’s expected for the US dollar to weaken in the following months thereby creating an inverse trend for Bitcoin price. Secondly, the market equities are also expected to outperform American stocks, bonds and similar vehicles. Therefore, a positive environment for cryptocurrencies will be created which are classified as non-correlated assets. Tom Lee explained that $25,000 is a fair value for Bitcoin, in an appearance on an American television. Furthermore, he also cited an uncorrelated digital asset that is used as a advanced store of value and form of money.
Further, Fundstrat believes that the institutional investors will continue to flow in over 2019. The research team at Fundstrat is also positive about an influx of customers due to an addition of credit card purchasing facilities introduced by Binance. Additionally, they mentioned that companies like Bitmain, Bitfury and other industry giants may conduct IPO. Therefore, the report stated,
“We have detailed the trends of factors affecting crypto in 2019, and [there are] more positive than negative developments… Overall, the outlook for Bitcoin should improve over the course of 2019.”
A report on Feb 8 states that Bitcoin managed to stay about the price point of $3600 for three days in a row. In comparison, other major cryptocurrencies experienced double-digit gains on the same day.