What is going to take Bitcoin to new highs? One analyst says it may not be what you think...
Bitcoin has several possible catalysts in the near future that may take it to new highs
Which one will it be?
We have the next block reward halving taking place in May of 2020, which traditionally has been very bullish for bitcoin.
We have Bakkt launching as well as a couple other institutional oriented products that should usher in a different class of investors, a la the institutional variety.
However, according to our friend Tom Lee, it may be something else entirely that may take prices to new all time highs.
Lee says to watch stocks for bitcoin's next move
Watch stocks, that doesn't make much sense, does it?!
Well, actually it does!
According to Lee, stocks will be a very good indicator of central bank liquidity and stimulus. IE, if stocks are going up, it likely means central banks are injecting stimulus in the markets.
Lee thinks that stimulus for stocks will also be good for bitcoin.
His exact quote:
“The next big catalyst, I think, is a decisive breakout in the equity markets, because I think once equities break to an all-time high, bitcoin becomes a risk-on asset.”
(Source: https://www.cnbc.com/2019/09/15/tom-lee-bitcoin-and-sp-500-are-heading-to-new-all-time-highs.html)
Lee has some data to back up his theory as well
Bitcoin doesn't have a ton of trading history to pour over, but a look at the last 10 years we see a possible trend emerge as it relates to equities.
The years that stocks have enjoyed greater than a 15% return, bitcoin has also enjoyed some of its best years:
(Source: https://www.cnbc.com/2019/09/15/tom-lee-bitcoin-and-sp-500-are-heading-to-new-all-time-highs.html)
Coinincidence?
Probably not.
Bitcoin may work well either way
Lee was also quick to point out that even if we don't have an easy money environment (which we will), bitcoin could still do well.
According to Lee:
“Bitcoin may be ambidextrous in that it works well in a risk-on world, but as you start to get nervous, then you treat it like digital gold.”
(Source: https://www.cnbc.com/2019/09/15/tom-lee-bitcoin-and-sp-500-are-heading-to-new-all-time-highs.html)
An ambidextrous bitcoin works for me!
Stay informed my friends.
-Doc
One more huge dip to 7-8k will be enough fuel to launch bitcoin to all time highs at the end of 2020! 😅
Posted using Partiko iOS
I hope we never see that dip and those waiting for it are forced to chase. :)
Bakkt and CME doubling the future contracts got me bearish next week but who knows, bitcoin has a mind of its own 😬
Doubling the Futures Contracts? What do you mean?
I love when this guy talks as the logic is always there. However, if we depend on the S&P, we may be in for some continued volatility.
Posted using Partiko iOS
I think his point is just that we are depending on central bank stimulus, and if that happens in a major way, like is expected, stocks will go way up and bitcoin likely follows as easy money is flowing around to all sorts of risky assets.
Congratulations @jrcornel! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
Only when stocks do not go anywhere does btc stay put...
Posted using Partiko iOS
I think it's quite obvious that stock markets, just like tax returns, have effect as people have more money to buy cryptocurrencies. What comes to block reward halving, it's all about total value of the coins as one coin must at least be worth twice compared to time before block halving.
I think the price of stocks in general is more about market feelings and confidence rather than a true indication, but it is an interesting idea to see how closely they tie in. I think in the next 1000 days bitcoin will be the best performing asset class. I'm just hoping it brings some alts along for the ride
Yes, that sure would be nice. Namely steem. It's been beaten up more than most.
20k by dec?🎱
I like it!
Do you think we are still in a Up trend or down trend?