Tom Lee, finance expert and head of research at Fundstrat Global Advisors, has good news for Bitcoin enthusiasts. He believes that the crypto winter is over and digital currencies, particularly Bitcoin, will start surging in value. He supports his bullish attitude on eleven signs included in a recent report published by Fundstrat.
One of these is a significant increase in demand for cryptocurrencies in countries suffering from major economic crises. Another sign cited by Lee is that Bitcoin has recently crossed above its 200-day moving average.
Turmoil in Venezuela and Turkey: the Reason for the Surge In Demand for Bitcoin
During a phone interview for Futures Now show on CNBC, Lee said that
the evidence is mounting to support his bullish attitude towards Bitcoin. He pointed out that the economic and political situation in Venezuela and Turkey led to greater demand for BTC and other digital currencies.
According to Lee, trading originating from these two countries led to a 30% increase in on-chain activity. He explained:
People are saying, ‘Look, I don’t trust using these local currencies. I don’t trust the banks. I’m going to start using Bitcoin.’ And that’s what’s causing the on-chain volume to really take off.
Bitcoin Breaks 200-Day Average: Another Significant Indicator for Lee
That significantly increased on-chain blockchain activity may also be, Lee stated, yet another indicator of the bullish crypto market. Bitcoin has finally broken the 200-day moving average on the 1st of April.
This is, in Lee’s opinion,
a big technical hurdle to cover and it hasn’t been above its 200-day average for more than 13 months. At that moment, the BTC price also jumped from about US$4200 on April 1, to over US$4700 on April 2.
Looking towards the near future, he believes that Bitcoin will likely reach its all-time high value in 2020.
Recent Fundstrat Survey Supports Lee’s Beliefs
Last but not least, Lee bases his bullish attitude on a survey conducted by Fundstrat Global Advisors, where he acts as managing partner, finance expert and head of research. The survey conducted among over-the-counter brokers showed an increased trading of Bitcoin.
For Lee, these are signs that
fundamentals are improving, technicals are improving and now there is real activity by, essentially, crypto hodlers.
At the time of writing, Bitcoin price reached its 6-month high, rising above US$6000.
Tamara is a marketing and PR professional, enthusiastic about crypto, blockchain and technology in general. She’s the editor at Bitcoin UK.