Bitcoin (BTC) and the crypto markets have been on fire as of late, and more and more experts now agree that the trend has officially changed and crypto winter is over.
Since the beginning of April, the price of Bitcoin has nearly doubled, and the market capitalization of all cryptocurrencies is almost $250 billion, up $150 billion from its lows in December of last year.
Sharing insights about the current state of crypto, permabull and Fundstrat Global Advisors co-founder Thomas Lee tweeted 13 reasons why the crypto winter is over.
After a disturbing pullback to ~$6,200, #Bitcoin back >$8,000 further cementing positive trend intact.
As we said a few weeks ago, Consensus 2019 @coindesk was to prove whether crypto winter is over…
…confirmed pic.twitter.com/M8ni4g2YvX
— Thomas Lee (@fundstrat) May 19, 2019
13 Reasons Why Crypto Winter Is Over
Some of Lee’s 13 reasons have more weight than others, but they all contribute to Bitcoin’s bullish recovery nonetheless.
Lee starts off by looking back to November 2018 when Bitcoin dropped off a cliff from $6,000. He speculates that the Bitcoin Cash hash war is what caused the final capitulation to $3,200.
Another factor he believes confirms that Bitcoin has made its recovery is that Grayscale’s Bitcoin Investment Trust (OTC: GBTC) saw its NAV premium fall to 5%, the lowest level since 2017. Also, since this fall, the fund’s premium has already surged by 41%, which signals a strong trend reversal.
Next, he says that daily on-chain transactions turned positive for the first time since January 2018 and Fundstrat’s Bitcoin Misery Index crossed above 67, a signal that historically marks we’re in a bull market. Another bullish signal is when Bitcoin crossed above the 200-day moving average in April.
Lee also mentions that increased over-the-counter (OTC) trade volumes and surging on-chain activity contribute to the bullish case for Bitcoin. He also notes that Bitcoin’s 50-day moving average crossed the 200-day moving average, a long-term indication that marks a change in trend from bearish to bullish.
Other reasons he mentioned were the resurgence of certain Twitter accounts, new bullish reports from respected analysts, stable market reactions to the Bitfinex/Tether scandal, and a positive reaction during the Consensus 2019 conference.
Moreover adding to these 13 reasons, Lee notes that Bitcoin’s quick recovery to over $8,000 from its recent flash crash to $6,200 further cements that a positive trend is intact.
The Bull Market Is Real
Agreeing with Lee’s bullish take on Bitcoin is Arthur Hayes, CEO of the popular crypto margin trading platform BitMEX.
According to Arthur, the Bitcoin bull market is real, and its recent quick recovery from the steep plunge below $7,000 on May 15 proves that Bitcoin has newfound strength.
The bull market is real. A momentary dip below 7k, and a few days later we are back above 8k and the Sep and Dec contracts are in contango. Booyah! pic.twitter.com/qknhDQ8i7p
— Arthur Hayes (@CryptoHayes) May 19, 2019
Currently, Bitcoin is trading just under $8,000, and market sentiment is very positive. However, it’s still widely speculated that we’ll see a greater correction before Bitcoin continues higher. Whether that correction will come is anyone’s guess; all we know for sure is that Bitcoin’s volatility is back, and the crypto winter is likely over.
Do you think the crypto winter is over? Is Bitcoin in a new bull market or will we see sideways action of accumulation? Let us know what you think in the comment section below.
