The cryptocurrency community is abuzz with the expectation of a big bull run in 2020. While the current market is witnessing a renewed tussle between bulls and bears, it is easy to see that most of the crypto community believes there will be a significant bull run in 2020 eventually. Tom Lee, a market strategist from Fundstrat believes that there are five concrete reasons why Bitcoin will see a healthy bull run in 2020.
In a blockchain conference in Istanbul recently, Lee gave his two cents on the matter. He started off by saying that the next twenty years will be crucial when it comes to financial disruption and cryptocurrencies will be a very important part of this process. He admitted that the near future is difficult to predict and it will be difficult to see how the current financial situation will change to accommodate cryptocurrencies.
He, however is convinced that the cryptocurrency market will see a heavy bull run in 2020. His five reasons include:
The 2020 US elections are around the corner and crypto is increasingly under the spotlight. Lee believes that due to this renewed attention in the sector, the price is expected to increase by the end of the year when the elections will take place.
The Bitcoin halving in May 2020 will see the total supply be virtually cut to half. Rather than 12.5 BTC per 15 minutes, we will see a drop to just 6.25 BTC per 15 minutes. The demand for crypto is growing while the supply is decreasing. This will definitely bring about a crypto boom according to Lee.
The US-Iran tensions have re-ignited the fears of an end to world peace and thus, has resulted in massive increase in the price of safe havens like Gold and Bitcoin according to Lee. The tensions are expected to continue and with it, the Bitcoin bull run is expected.
The deadly Corona Virus is expected to increase fears and stifle the traditional financial instruments. It is therefore expected that Bitcoin will see a healthy increase in the near-term as conventional assets flop according to Lee.
The 200-day moving average has been below the trading value for some time. When this occurs, Lee believes that the market remains in the bullish zone for a long time. He said:
I think there’s even a chance that Bitcoin could end, or touch the level of, somewhere around $30,000 this year.
So, overall, Lee believes the bull run is coming for sure.
Image by Bishnu Sarangi from Pixabay
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