Jeffrey remarked that cryptocurrencies are much like the early Dotcom industry, echoing remarks made by a number of analysts, such as Meltem Demirors. Yet, he noted that this budding space is compressed time-wise in comparison to Dotcom, explaining that development in this space is four to five times faster than Internet-enabled digital technologies. Thus, crashes and rallies are only accentuated and amplified.
“This is very much like the dotcom boom and bust cycle that we saw in the late 1990s, early 2000s. We’ve just gone through the analogue of that cycle in the crypto universe in a compressed timeframe. So in the dotcom boom and bust cycle it was about four and a half years, maybe five years. In the crypto world, it was about a year and a half.”
Bitcoin and Crypto Markets Cooling Off
Mr Jeffrey says in 2017 and early 2018 people made the mistake of becoming caught up in the crypto investment mania.
“I think people got very over exuberant and maybe extended themselves a little bit too far, and then they got scared. And don’t forget that the (traditional) markets have also experienced a lot of crashing and volatility so it’s not isolated to just crypto.”
This, however, was not the end of his story.
“This is the middle part. This is the second act. The third act is Return of the Jedi and we’re not there yet. That is coming.”
Tom Lee Also Has a Bullish Forecast for BTC
Fundstrat’s co-founder and head of research also has great predictions for Bitcoin by the end of the year. In a tweet, he presents his thoughts and motivations for which BTC is set to surge by the end of 2019.
CRYPTO: we see 9 incremental improvements in the landscape that ultimately support higher prices.
See below… pic.twitter.com/7DSrfVjkoi
— Thomas Lee (@fundstrat) February 8, 2019
Back in 2018, he predicted a bull run that never became a reality. 2018 was a bearish year that ended with the most apocalyptic fall of the crypto prices so far.
People have been expecting 2019 to be more bullish and most importantly to mark the crypto mass adoption so it seems that we’re now at the end of ‘Empire’. Bitcoin has lost its hand, and Ethereum has been captured and frozen in carbon. And of course, thousands of grunts have been slaughtered in the process.
The tokens with real value will push through, and who knows what may still appear to become the Facebook of crypto. Jeffrey insists ‘this is coming’, and stands by his early prediction of a $250K for Bitcoin.
We already wrote of how high-profile investor and cryptocurrency pioneer Mike Novogratz expects institutional money to flood into Bitcoin eventually and he’s surprised it’s not happening on a larger scale already.
“I don’t understand why all the big macro funds out there don’t have a one per cent position in BTC. It just seems logical, even if you’re prone to be a skeptic.”
Bitcoin Won’t Rally Until Dictators Stop Selling
Peter Tchir from Forbes thinks that maybe it is a coincidence that Bitcoin’s recent slide that started in early January just as Venezuelan bonds started rallying on hopes that Juan Guaido could be a credible replacement for Maduro.
“It could be coincidence, or it could be that a dictator facing international pressure and steep declines in oil revenue was selling Bitcoin to fund operations? That sounds like a conspiracy theory and there is no evidence that Madura or his cronies owned Bitcoin, but this isn’t the first time I’ve noticed this trend.”
He added even North Korea seemed to exhibit this sort of pattern. With North Korea, it seemed as though whenever tensions rose surrounding their nuclear threats and the United States’ economically punitive response, Bitcoin prices slid.
“I continue to look for reasons to recommend buying Bitcoin and other cryptocurrencies. For signs that decline that started in December 2017 is finally over, but I cannot see them.”
Just for a reminder, co-founder and CEO of Twitter, Jack Dorsey, declared that he believes Bitcoin will become the internet’s native currency eventually.