Analyst Tom Lee Predicts Bitcoin to Hit USD 91 000 by 2020

Fundstrat analysis outlines positive long-term development with short-term red flags.

by Marin Marinov
20 March • 3 min
In Coins

Thomas Lee, managing partner at Fundstrat Global Advisory and former J.P. Morgan's Chief Equity Strategist, has predicted Bitcoin (BTC) to hit USD 91 000 by 2020, Market Watch reported. The largest cryptocurrency by market capitalization is still in a bull phase despite the drop after the December all-time high, a Fundstrat report, prepared earlier this month, states.

The New York-based research firm has made a technical analysis of Bitcoin’s market performance, outlining some red flags, especially the failure to break the important USD 11 750 level. Typically, March is the worst month for the crypto market leader. Bitcoin was raising only one time in March in the past seven years.

big yellow coin in front of black screen

Fundstrat, however, sees a positive long-term outlook: “Weekly indicators that track one to two quarters are still positive. We think it’s trying to form a bottom,” Robert Sluymer, technical strategist at Fundstrat has said. “A further silver lining is the short-term indicators are oversold,” Sluymer added as quoted by Market Watch.

This year’s peak of Bitcoin will be in July, Tom Lee analyzed in February, comparing the cryptocurrency’s 22 corrections since 2010.

Bitcoin – just another bubble?

In February, Nouriel Roubini, professor of economics at New York University (NYU), predicted a future collapse for BTC because it is favored by “charlatans and swindlers”,  the Guardian reported. Roubini, also known as Dr. Doom for his forecast of the 2008 global financial crisis, proclaimed Bitcoin “the mother of all bubbles” and compared it to the Dutch tulip bubble.

The Netherlands tulip mania (1634-1637) was the period when the price of a bulb reached extraordinary high levels, exceeding the annual income of a skilled worker, and then dramatically collapsed.

Pat Wechsler, a veteran journalist, analyzed Roubini’s prediction and published a comprehensive report for SAGE, an independent academic publisher last week. Bitcoin may disappear because it offers no investor protection and it is subject to high market volatility, Wechsler wrote.

She outlined the coin’s vulnerability to market manipulations as it allows anonymity and involvement of criminal elements.

Blockchain technology

While Bitcoin as an alternative currency triggers disputes among market observers, almost all analysts recognize the significance of the Blockchain technology, introduced by the BTC. According to Wechsler, Bitcoin is an “adventurous pioneer that changed the landscape but then lost momentum to faster-reacting and innovative competitors.”

two big coins with different colors and letters

“In other words, there is no guarantee it will be around to witness all of the commercial and industrial disruption its technology is apt to spawn,” Wechsler concluded.

During a presentation at Upfront Summit 2018 in February, Tom Lee predicted that Bitcoin has a future because the Blockchain open code enables trust, which is very important in times when public don`t trust governments around the world.