Bitcoin: Tom Lee predicts BTC price rally to hit $40K

  • According to Tom Lee geopolitical tensions, Coronavirus and Bitcoin’s Halving will have a positive impact on the price of BTC.
  • Furthermore, Lee states, that the United States will have a reduced impact on Bitcoin’s performance due to the November presidential election.

The co-founder of the research firm Fundstrat, Tom Lee, spoke in a recent interview about the outlook for Bitcoin in the coming months. Lee made a new prediction and stated that the price of the BTC will reach $40,000. In the  interview with CNBC, Tom Lee said that Bitcoin is at the beginning of a new bull run driven by three factors: Bitcoin’s halving in May; geopolitical tensions caused by the spread of the Coronavirus and U.S.-Iranian tensions; and the U.S. presidential election. Lee stated:

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.

In late 2019 an escalation in political tensions between the United States and Iran caused the price of Bitcoin to rise. On peer-to-peer trading platforms such as LocalBitcoins, the price of BTC reached up to 24K USD (equivalent to 1 million Iranian Rials). In other politically shattered countries, people were also turning to Bitcoin during periods of uncertainty. During this time, according to some experts, the narrative of Bitcoin has proven to be a safe haven and 2020 will be no different.

Lee said about the influence that the United States government and its institutions had on the price of Bitcoin:

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.

Bitcoin will outperform Dow Jones

A month ago Fundstrat published its annual report on the crypto market for 2020. The report predicted that the U.S. elections will have a positive impact. The country will put its immediate interests first, as Lee states in his interview, and the uncertainty surrounding the results will motivate investors to seek refuge in the Bitcoin. In conclusion Lee said that a new all-time high could be reached before the end of 2020:

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.

Lee predicts that this year’s all-time high for Bitcoin will be $40,000. He added that the rally in the price of BTC will exceed the performance of the Dow Jones and will reach the important mark of $40 thousand USD first.

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Lee’s optimistic predictions are shared by major investors in the crypto industry, such as Tim Draper. The billionaire also shares the view that Bitcoin will reach a new all-time high after the Bitcoin Halving. However, Draper is more optimistic and his prediction is $250,000.

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At the time of publication, the price of Bitcoin stood at $9,784 with a 1.06% loss in the last 24 hours.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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