Bitcoin is starting 2020 with a bang. With double-digit gains in January, the top cryptocurrency briefly breached psychological resistance at $10,000 over the weekend. Even with the current pullback to $9,757, BTC is still up by over 36% year-to-date, with more upside potential this year, according to Fundstrat co-founder Tom Lee.
In a recent appearance on CNBC’s Power Lunch, Lee argues that Bitcoin is now at the start of a new bull run.
“A lot of good things have happened with Bitcoin this year. One is the halvening is happening in May. But we broke above the 200-day [moving average] – so back in a bull market. There is the corona[virus] risk and geo-political tension…
Last year, I think Washington killed the Bitcoin rally. But with the elections, it’s sort of not in the purview of Washington. So I think Bitcoin could rally very strongly from here.”
Regarding the projected strength of the rally, Lee adds,
“When Bitcoin breaks above its 200-day, which it did about two weeks ago, its average six-month gain is about 190%. So this would point to all-time highs sometime this year.”
Comparing the Dow Jones Industrial Average, currently at 29,276, to Bitcoin, Lee expects the former to reach 30,000 first.
“But if I had to say what is the first to 40,000, I would not pick the Dow.”
— Power Lunch (@PowerLunch) February 10, 2020
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Featured Image/Shutterstock: Surachet Jo