KEY POINTS

  • Bitcoin will double this year according to financial research firm
  • Thomas Lee, the managing partner of Fundstrat, thinks that "halvening" is not priced in
  • Geopolitical risks and election are two factors that will prop up BTC's price in 2020

The new year almost seemed like a downer for those holding Bitcoin (BTC) as the first three days of January have seen the flagship crypto grazed below the $7,000 psychology level. A few days after that and BTC is sitting comfortably above $8,000, that at one point, nearly touched $8,500.

Where the price of the popular crypto is heading in 2020 is much of a debate in the crypto world with predictions that date back to when John McAfee forecasted a $1 million BTC and offered his family jewels as a wager. And, although this is just a ruse to trick people into getting in the crypto revolution, as what McAfee admitted to recently, the prospects of Bitcoin going for a rally has not died down, and that's certainly the case for Fundstrat Global Advisors.

BTC closed at $3,800 in its first trading day of 2019 and ended up roughly doubled (+92%) in value when the year concluded, and Fundstrat predicts that BTC will make a similar move this year. The managing partner of the financial research firm Thomas Lee tweeted his firm's outlook for the year, citing some overview of their analysis offered to their clients.

Bitcoin Halving/Halvening not priced in

What many are hoping to prop up BTC's price is the scheduled halving in May. However, those who follow technical analysis concepts think that this information has been priced in as early as 2019 when the crypto rally occurred in June. To Lee and the rest of Fundstrat, it isn't, and in his tweet, Lee said the "highest probability is 'halvening' not priced in."

Geopolitical Risks

Fundstrat also adds risks concerning geopolitics to the halvening. One example is when it went up following the U.S.-China trade war. The most recent case was the Iranian retaliation on U.S. bases in Iraq that allowed BTC to burst past $8,000.

Factoring in elections, and Fundstrat projects BTC in excess of a 100% price acceleration. This is already anticipated by Lee back in December as he said on a CNBC video, "I look at 2020 as the easiest way to make money in crypto is gonna be a position in Bitcoin."

So, as Bitcoin was crowned as the investment of the decade not too long ago and if it gets through 2020 on a good start, it could be on its way to becoming the investment of this decade.