Chart Shows Bitcoin Hitting $91,000 By March 2020
Warren Buffett has concerns about Bitcoin and Allianz’s Head of Global Economics & Strategy thinks it could fall to $0. But Tom Lee, Fundstrat Global Advisors’ Head of Research, thinks it could rise to $91,000 by March 2020. Fundstrat and Lee have compiled an impressive database, statistics and graphs on Bitcoin that helps to visualize short-term and long-term trends. They include the cost of mining Bitcoins, hourly, daily and monthly trading trends and technical analysis.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Lee also introduced the Bitcoin Misery Index, or BMI, just over a week ago that is at the second lowest point of the past 8 years. It is a contrarian indicator, meaning the lower it is, the more positive the outlook for Bitcoin to move up in price.
Short-term pain for long-term gain
Lee and his team have produced a new graph that shows Bitcoin’s four declines of 70% or greater since 2010 . After the previous three drops it has experienced significant gains , probably eclipsing the returns of any other asset over the same time period.
Because the chart has a logarithmic scale Bitcoin’s price movements don’t look as pronounced as they would be if charted on a linear basis (how most graphs are depicted).
Lee’s report also shows that Fundstrat’s strategy is to focus on more established digital currencies. This matches my thinking that there will be a significant shakeout of the 1,500 plus cryptocurrencies as large corporations and organizations will only put resources into a few of them.