Bitcoin will bring 100% returns this year and will experience a sharp rise before the Bitcoin halving event, believes market Research firm Fundstrat Global Advisors. Investors are delighted reading the firm’s ‘2020 Crypto Outlook’, a review and prediction of the market for the ongoing year, as they find out that Bitcoin will deliver a bull market in 2020.
While the crypto community is already assured that we will see major profits during the year, some are worried that Bitcoin will not be bullish until the second half of the year. The reason behind this is that some believe the upcoming reward halving event to be already ‘priced in.’
Fundstrat: Bitcoin halving is not priced in
Fundstrat co-founder and beloved Bitcoin bull Tom Lee shared the report’s key information on his official Twitter account. For now, the report is only available to the firm’s clients. Shared on Jan 10, Lee stated:
“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin — thus, we believe Bitcoin and crypto total return should exceed that of 2019”
In another part of his post, Lee shared Fundstrat’s belief that “In other words, we see strong probability that Bitcoin gains >100% in 2020.” While the halving event may naturally lead to a higher valuation, Lee and other experts predict that increasing geopolitical tension and the upcoming U.S presidential elections will impact the price positively.
Fundstrat notes that Bitcoin’s dollar price reached its highest levels during the heated regulatory debate regarding Facebook’s Libra stablecoin. Another important factor that influenced Bitcoin in 2019 includes President Donald Trump’s negative Twitter comment.
Will global tension cause >100% gains?
As CryptoPythia previously reported, uncertainty and geopolitical tension are some of the major price-driving factors behind Bitcoin. In January, the influence of global events on the cryptocurrency sector reached its highest point as U.S. and Iranian airstrikes led to bullish price movement. At the time, Bitcoin bounced from $6,900 to around $8,400.
While political experts believe that a future conflict is highly unlikely, heightened tension between global superpowers would still affect the price of Bitcoin. With the upcoming U.S. elections, the current administration may try to put an end to some of the global conflicts in an attempt to win yet another election.
Combined with the Bitcoin halving event in May, the world’s largest digital asset could face an explosive pump that is posed to attract retail interest.