Tom Lee Explains How Crypto Winter Is Over – Details
Thomas Lee, Co-Founder, Managing Partner and the Head of Research at independent research boutique Fundstrat Global Advisors explained why his firm believes that events over the past six months “confirm” that crypto winter is over.
Thomas Lee yesterday tweeted:
After a disturbing pullback to ~$6,200, #Bitcoin back >$8,000 further cementing positive trend intact.
As we said a few weeks ago, Consensus 2019 @coindesk was to prove whether crypto winter is over…
…confirmed pic.twitter.com/M8ni4g2YvX
— Thomas Lee (@fundstrat) May 19, 2019
The 13 “signals” that are mentioned in Lee’s tweet are interesting but the focus is on those that we have seen during the past month.
The “Bitcoin in Heavy Accumulation” Report by Adamant Capital which was written by Tuur Demeester and Michiel Lescrauwaet, co-founders of Adamant Capital, and published on April 18 Concluded that:
- Bitcoin is in the last stage of the bear market, i.e. the “accumulation phase.” More specifically, their analysis of the Bitcoin blockchain shows that “Bitcoin HODLers are committing for the long term again.”
- Bitcoin’s fundamentals are improving as it gets embraced by both millennials, who tend to like disruptive technologies, and institutional investors, many of whom see Bitcoin as “an uncorrelated, highly liquid financial asset.”
- Bitcoin has the most “favorable” long term risk-reward ratio of “any liquid investment in the world.”
- We are going to “mass market adoption” of Bitcoin during the next five years.
In a report published on May 6 (Volume 3, Issue 13), crypto research firm Diar said this about Bitcoin’s on-chain activity:
“The number of transactions on-chain is also just shy of the all-time-high of December 2017. Since hitting a low in February of last year, month-on-month growth for the number of transactions has been clearly evident”
See Chart:
