Bitcoin to be the best performing asset into year end?
That's what one top Wall Street Analyst thinks anyways.
Tom Lee said today that he thinks Bitcoin will outperform stocks and bonds the rest of the year, or any other asset class for that matter.
If you have been following my blog for any length of time, the name Tom Lee might sound familiar to you.
I wrote a post about him several weeks back, it can be read here:
Basically, Tom Lee is the first major Wall Street Analyst to issue a report on Bitcoin.
To the details...
Why does Mr. Lee think that Bitcoin is going to out perform other asset classes from here on out?
To, Mr. Lee it is quite simple:
"Bitcoin is an under-owned asset with potential for huge institutional sponsorship coming."
That's great Tom, but why are they all of the sudden going to buy it now?
"In the past, institutions had to directly buy the coin through a broker, but now that both the CBOE and the CFTC have opened up options and futures trading, I think it's going to grow in it's holdings."
That is very interesting and something I touched on briefly as well in my post on the topic.
By the way, more about those CBOE and CFTC announcements can be read here:
https://steemit.com/cryptocurrency/@jrcornel/bitcoin-options-are-on-the-way
Basically, it sounds like Lee is thinking that with derivatives coming, it will open up Bitcoin to a much wider group of investors, which will ultimately drive the price higher into the end of the year.
Others agreed with Lee about Bitcoin outperforming other assets mostly because there wasn't many places for money to go right now.
The stock market is at or near all time highs, gold is locked in a trading range, and bonds are still not offering much in the way of returns.
Bitcoin is making new highs seemingly every month, where else would money go?
This isn't Lee's first comment on Bitcoin.
Referenced in my post linked at the top of the page, Lee published a report in early July outlining his thoughts on Bitcoin and why he thinks it will ultimately rise above $20,000 by 2022 at the minimum. His maximum price target was $55,000 by 2022.
As you can see, he is pretty optimistic about Bitcoin in general.
However, before you dismiss him as being overly optimist or another pie in the sky dreamer, keep in mind that he has nailed a lot of his calls in the past.
In fact, he was one of the few on the street that predicted a Donald Trump victory in the elections would cause a stock market rally, a contrarian view at the time as most thought a Trump victory would be bad news for stocks.
He has also been right on a number of other calls in the past, in fact he has turned out to be one of the best performing analysts I have ever come across in regards to making predictions.
He is a perennial favorite among big institutions and one of my personal favorites as well.
The one caveat to all of this...
It sounds great hearing him say that he thinks Bitcoin is going to outperform all other assets from here, but he didn't really give us a number.
That is important because if you look at his prediction for the US stock market from here, he actually has stocks ending the year roughly 8% lower than they are today.
Making him one of the most bearish analysts on the street by the way.
Given that context, Bitcoin could actually end the year 5% down from current levels and still outperform US stocks, if his prediction for the markets is right anyways.
Either way, after listening to his interview, and even though no numbers were given, it seemed clear that he thinks Bitcoin is going to SIGNIFICANTLY outperform from here...
Not just fall less than the rest. ;)
Stay informed my friends!
Sources:
Image Sources:
http://www.businessinsider.com/tom-lee-strategies-ytd-returns-2016-4
Follow me: @jrcornel
BTC will lead the way!
Bitcoin is already nearly $4,000.... it went up by nearly $500-$600 in 3-4 days!
Any ideas on Bitcoin cash? Please share you opinion. Some people are thinking of buying some but not sure where to buy it yet as not many wallets support BCC either.
Would love to hear your opinion.
To me right now bitcoinis the ultimate asset because of what is going to happen in the future of bitcoin. If its at 3400 right now and not even 1% (100mil)of the world population doesnt know about it yet what you think will happen when 10mil or 20mil starts utilizing bitcoin.
Don't forget the bear
The institutions are creating the options market infrastructure for bitcoin so that they can control and manipulate the price. Just like they do with gold and silver markets. Also with high frequency trading applied to the blockchain the institutions will be able to fleece the little guys. Just my opinion but I believe generally that the mainstream legitimization equals control. The price will go up but limits will be set by those big players that can issue billions in "paper" bitcoin like they do with silver. Nothing can Stop the blockchain but it can be controlled. Just look at the trading shenanigans going on at Bitfinex recently before the split. That price manipulation was done without options trading and a tiny fraction of the money and hypothecation that will eventually come in to the BTC market. Being accepted into the club is great being subjected to the status quo not so great!
What people don't seem to understand, is the little guy is going to have the technology that the big guys have. Actually the little guys will understand the markets and applications comprehensively, while the big guys will have to learn from scratch. Many of the little guys have 5+ years of trading experience, and these little guys are building the platforms that understand the bitcoin/crypto market
I do understand that the little guy has a head start on this but it won't take long for the big guys to buy up more BTC than the little guys. Some hedge funds are already in the game with millions of dollars in BTC. They just hired a crypto geek and were off and running.
http://money.cnn.com/2017/04/20/investing/mike-novogratz-bets-big-on-bitcoin-ether-blockchain/index.html
It's just uncertain what kind of control they are going to exert on the price down the road. Hedges funds are there to hedge by selling short thats how they make money with leverage and derivatives. The Bitcoin cap is relatively small compared to the rest of the markets and the amount of capital the big guys have to throw around is staggering. Not much we can do but hold on tight to our BTC and sit back and watch.
A group of whale dominate the market,
I agree with you, decentralized didn't work this day
Its a pessimistic view but i tend to agree. The little guys may have got here first and understand how the ins and outs of blockchain works and how to create their own voting bots etc. But the big guys know how to manipulate the price. Hopefully we will make money anyway but the individual gold rush prospectors did not turn into the mining houses we know today despite being first.
HFT may not be possible given the transaction capability of the network so there is one equalizer for the little guy. I agree with your sentiments on the amount of capital these funds have is staggering but if you are long on BTC this makes for an excellent exit from the asset class the only problem is that the barrier to entry will be a very high bar if the prediction of $55K were to ever come to fruition.
He's right, CBOE and LedgerX huge news... the big $$$ isn't even in yet. And everyone thinks it's a bubble lol. I read somewhere today not to buy bitcoin because of EMPs. Now that's FUD!
Lol that is pretty funny! If the internet goes down for any length of time I think we have bigger issues than not being able to access our bitcoins ;)
Thats is funny. I often hear the same argument from crypto newbs asking " what if the internet goes down"
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yes, He's right
$20,000 Bitcoin? Wow that is a high number. I hope it rises by that much.
Also, I like how you have enough of a history that every topic you bring up is linked to another article where I can learn more about the subject. It really helps with getting a sense of all the events and announcements that have been happening recently in crypto.
Thank you! Yes $20k would be very welcome indeed. :)
The popular prediction right now is $5000 by the end of the year so that would be great as well.
I saw that you seem to be using a real name for your Steemit account, I was wondering if you'd be willing to contribute your thoughts on my most recent blog post Usernames vs. Real Names on Steemit
IMO bitcoin will reach that level eventually, but they need to sort out the scaling issue fully, include privacy, and side-chains need implement ASAP! Market share will be lost until this is done.
He is right regarding institutional money. When those flood gates open, the sky is the limit. But they won't invest until they are comfortable with regulation etc, so we still have a way to go!
Cannot wait until that happens :)
4040$ it is awsome!
Hope so and we all have a great X Mas I think $ 5000 in December ;)
I wish you merry HODLing and happy new lambo!
LoL good one :)
This is good news. Soon more people will accept Bitcoin and other Altcoin.
Agreeded