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Over the last week, the world’s largest cryptocurrency Bitcoin has been consolidating around $8000 levels. After a massive run-up since the beginning of April 2019, Bitcoin is looking to set up its base around $8000 levels.
Several analysts and investors are waiting on the sidelines for Bitcoin to cross $10000 as its next immediate target. However, Bitcoin is currently struggling below $8000 levels. At the press time, Bitcoin (BTC) is trading at a price of $7743, down 2.5% in the last 24 hours.
But Bitcoin bull and founder of Fundstrat Global Advisors Thomas Lee is very hopeful for Bitcoin to soon cross $10000 levels in the near term. During a recent interview with Binance CFO Wei Zhou, Lee expressed his bullish thoughts.
Bitcoin to See a Wild Run Northwards Post $10000 Levels
Lee notes that if Bitcoin crosses $10000 levels once, its price will quickly shoot to $20,000 in no time. From there, the FOMO will kick-in pushing its price by another 200% to 400%. Lee said:
“If bitcoin somehow manages to get to [$10,000], it’s very likely going to make a run to $40,000 within five months.”
While speaking on Bitcoin’s current levels, Lee cites historical data stating that “it’s at a level that very few people have lost money owning bitcoin here.” Lee further added that
“Every institution is going to realize, look at $10,000 it’s likely to go back to its all-time high, which is double. There are very few things that can double. So I think FOMO truly gets triggered once bitcoin hits $10,000.”
During the 2018 crypto market meltdown, Bitcoin lost nearly 80% of its value from its all-time high. As a result, this had created a panic among several, retail as well as institutional players. Lee notes that such a situation for any stock in the traditional market would have made the possibility of its recovery almost nil. However, he adds that Bitcoin has a league of its own. Lee said:
“At the end of the day, Wall Street – if there’s a known asset class and they believe they can have an edge, they’re going to be quite interested in investing in it…At the right tipping point, and it’s either going to be because of the size of the blockchain or the size of the crypto market itself, Wall Street’s going to suddenly say, ‘Hey look, I don’t care if I understand exactly what’s happening but if I can make a lot of money let’s go ahead and do it.’”
Bitcoin Halving to Push BTC Price Higher
Several crypto analysts have predicted that by the mid of 2020, we can expect the Bitcoin halving to occur. Bitcoin halving is an event where the block rewards will reduce to half, from 12.5 BTC to 6.25 BTC. Historically, Bitcoin prices have started recovering a year before the block rewards halving.
Analysts predict that this could be an entry point for investors to chip-in and grab their tokes before the price surge triggers. Some experts believe that Bitcoin is likely to cross its previous all-time high of $20000 before the halving event.
