Fundstrat’s Tom Lee, who often has some bullish remarks to make about the cryptocurrency market, has offered a prediction for when the next bull run will take off.
In an interview with CNBC’s Futures Now, the co-founder said a bull run in the next 6 months is likely, and placed his bet on August, though he is reserved about offering strict time frames.
The key number to watch is the 200-day moving average…Bitcoin’s bouncing along that. If Bitcoin holds above $4,000, it’ll cross its 200-day [moving average] by August, so I think the outside window is five to six months before Bitcoin starts to look technically like it’s back in a bull market.
Lee, who is a frequent guest on CNBC, previously said on the show that “investors are still recovering from that collapse in markets…many got very defensive.”
Lee also said the use of Bitcoin is growing, and cited the increasing use of cryptocurrencies in Venezuela.
When asked about developments such as JPMorgan Chase releasing its own token, the JPM Coin, being good or bad, Lee responded:
I think things like JPMorgan Coin and Facebook Coin are really sort of creating use cases and, actually, I think some credibility. JPMorgan’s coin is essentially a stablecoin. I think it’s not a threat to bitcoin.
When asked about what makes him feel bullish about Bitcoin’s prospects, he said:
I think the real story for bitcoin’s and cryptocurrencies future is whether or not it’s going to become an asset class…as an asset class, it’s still the earliest days. [Following the Bitcoin Cash hard fork] Bitcoin is going to spend a lot of time in the low 6000s fixing itself.
Despite Lee’s optimistic outlook, Fundstrat has warned investors that the market could hit new lows before rebounding.
