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
It's crazy watching bitcoin skyrocket to new highs!!
It means that bitcoin not ready for being standard digital currency adoption yet, because of it volatile too high.
Bitcoin will match just for investment this time
I posted about the crypto derivatives markets a couple weeks ago: https://steemit.com/news/@olyup/whale-cash-incoming-ledgerx-now-licensed-to-trade-crypto-derivatives
One big overlooked point is that the lack of transparent hedging markets was a big factor in rejecting the Winkelvoss' bitcoin ETF proposal. With those markets opening up now (and the market data that will make available to regulators), an ETF is becoming more likely.
I hadn't thought about that, (or heard that actually), but that is great news. I thought it mostly had to do with not being able to regulate the exchanges properly at this point...
'Transparency', i.e. sharing proprietary data, is a big part of being regulated. From the rejection notice:
Then in the footnote:
It looks to me like this could be the hurdle.
You seem to have a depth of knowledge regarding this. Think we could discuss some thing? I'm looking to open a business and could use some input!
BTC is lyfe
Why isn't Steem growing yet?
That is what I would like to know... we may have to wait on a little development on the steemit site before steem joins the party. Still think we see new highs within the next 6 months though.
:)
I can definitely see it continuing to perform this way through year end. Now as for the $20k...I really doubt that. There's only so much investment capital to go around and waaaaaayyy too many new cryptos. There will be profit taking and no one left with money to buy.
Besides...we all know Steemit is going to overtake Bitcoin eventually, right?!?
Ehhh Idk about that one, but it will definitely grow into one of the most dominate social networks. Outdoing Reddit and Facebook IMO
It's going beyond the year end. ;)
Bitcoin is the Present , the Future
Bitcoin = Hope
In Bitcoin we Trust
thank you so much for this post @jrcornel
@machhour
Mister Lee might be an investing expert and professional, but if he thinks Bitcoin is where the biggest gains are to be had, he obviously is not cryptocurrency expert as anybody with any knowledge about cryptocurrency will point out that several altcoins have gained significantly more growth than Bitcoin has.
Yes I think you might be right. I don't think he looks at other cryptos besides Bitcoin yet. Bitcoin is kind of the representative of the crypto space at this point.
It's funny what is considered an expert by people.. It shows how little people really know. Even within the cryptocurrency scene you'll find many self-proclaimed cryptocurrency experts who often times aren't really on the forefront.
It's funny, but I sometimes get my best info from the most scrawny and unprofessional looking nerdy teenage guys who record their youtube videos in some downtrodden bedroom. You'd be tempted to dismiss them but often they're the ones who find cryptocurrencies that are about to explode first before everybody else gets in. By the time the 'experts' finally get to informing the world, there's at most 30% gain left to be had. So far, sticking with the nerdy guys has been far better than listening to the 'experts'.
It's good that Bitcoin is discussed so much though! With all these altcoins doing so great, it's easy to forget about Bitcoin and how it still has to gain mainstream acceptance.
Resteemed :) !
There's a conspiratorial book title in there somewhere, "The Protocols of Bitcoin?" Or "The Protocols of Crypto?"
Hope you are right Sir
Wow this is really an impressive post and very motivating. It has my gears moving and trying to figure out the best strategy when it comes to my traditional investments.
I think the best advice I heard was to make sure all or most of your debt is paid off before you start investing in crypto. I invested early and have seen a great roi but I will not buy any more until most of my debt is paid off.
Even thou I got in early I hate the fact that every once in a while I have to go into my crypto stash to pay my bills.
Wow, 20K minimum!
Great news!
Really smart move from China. They have been farming bitcoin for years
I can see it. As Bitcoin begins to be mass adopted for it's functionality, combined with an upcoming lightning network, and more larger companies adopting blockchain technology, Bitcoin and cryptocurrency has come a long way, and the way it's going is up. Hodl on c:
and it will like this every year , bitcoi is the best investment in the world
I think ethereum has already outperformed bitcoin and every other asset this year.
Nice prediction, but this is reality
My number is $5.000 for Bitcoin without any emotions if there are all the current problems and fears off the table. Bitcoin is evolving like any other cryptocurrency who is serious and the market at whole get more traction because it is just in the beginnings of mainstream adoption.
Wonderful post, I really liked this post .. Continue please.
Followed you and upvoted done
Have a look into my blog, you may like any of my posts :-)
will we see 5k this year? :)
$4k yes, $5k I am not sure, maybe? :)
Maybe, on crypto world anything can happen
Thank you!
$20,000? Wow
With all the publicity about Bitcoin I wounder how else majority how are not in Bitcoin will be convinced.
My wife was optimistic about me buying Bitcoin 2 weeks ago. Now she is at peace about it. I read your message to her. She asked me to like it so I did.
With all the publicity about Bitcoin I wounded how many that are not Bitcoin will be educated.
thanks for heads up. tip! 0.15
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What's funny today, with the uncertainity coming out of the markets due to North Korea and that bs, the crypto market is up. The traditional markets are down? Me seems to think that money will flow into cryptos as investors look for alternative stores of value, once the house of cards called the stock market comes crashing down
I can see where options and futures trading stabilize prices but do the big institutions end up buying more of the actual coins or just the options?
Of course it will. The stock and bond market should all be classified as junk
Why oh why do I keep reducing my BTC holdings to buy other coins. Need to sit on my hands! :-)
True it can go higher . I am waiting to see if korean war or any other geopolitical issue causes bitcoin to go highrr or not . If higher iam buying more
Hey Great Article!!
It was really useful and Informative!!
Thanks for posting such an impressive article...it totally inspired me..
I write articles on bitcoins and other stuffs would really appreciate if you would check them out and give your views on it..
Thanks and i already upvoted and followed you :)
Hope to get followed back.
Cheers!!
hi my friend its great post please follow and up vote me
It will go up and up.....
I am a former bitcoin skeptic turned into a crypto connoisseur. To me it's basic economics. These assets have restricted supply. The only way to absorb exogenous shocks to the market (North Korea, options trading, forking madness, etc.) is through the price mechanism.
I've learned a lot and am looking forward to learning more from the cognoscenti on steemit! Thanks for everyone's hard work.
I am curious what exactly he mean by institutional sponsorship...
I think he means that not a lot of big funds own bitcoin compared to other assets like gold, silver, oil etc... Now that it is pretty clear that Bitcoin isn't going away and derivatives are coming that will offer some hedging strategies on positions, he is thinking a lot of funds that have been on the sidelines will start making their way into Bitcoin, especially since it is hard to generate returns in other places right now.
do u believe that just like bitcoin appreciated almost 1500% in last 3 year...can we see similar rise in steemit by 2020, can we see a level like 10 usd per steem atleast by 2019/20...would be glad to hear from you about steem.
I think so yes. It all depends on how big steemit (or any of the other applications built on steem) becomes. If steemit gets says 20 million users or so at some point, I would bet steem would easily be around $10 per steem....