Last week, Bitcoin price spiked so much so that is surpassed the $5000 mark for the first time this year reshaping bitcoin price predictions 2019. The sudden bitcoin surge surprised many even though it came on the back of overwhelming positive opinions about bitcoin and cryptocurrency in general. However, Thomas Lee, the co-founder of Fundstrat Global Advisors is not taken aback by the Bitcoin Bull Run. Rather, he said it was expected and that it marked the beginning of a cryptocurrency bull market.
Bitcoin Bull Run Has Started
During an interview with Bloomberg on Friday, Lee said that bitcoin (BTC) has returned to a bullish trend more than one year after it crashed. His comments affirmed opinions of several other bitcoin analysts who suggested that bitcoin continue to rise beyond its current price.
Lee explained that the bitcoin Bull Run has silenced bitcoin critics who asked “is bitcoin dead?” or “will bitcoin recover?” when bitcoin lost about 90 percent of its value from the all-time high position.
As Smartereum reported a day before the bitcoin surge, almost every respected cryptocurrency analyst were optimistic that bitcoin was out to make a sustained upward price movement—and that apparently has begun.
Why is Bitcoin Price Rising?
During the interview, Lee explained why bitcoin surged in the past few days and is poised to rise further. According to him, the dollar was not strengthening and China’s equity multiplier continued to grow thereby presenting a perfect wave for BTC to ride on.
The Whales Are Accumulating Again
In addition, Lee said the bitcoin whales—the investors who are known to hold large amounts of bitcoin—were accumulating bitcoin once again. The bitcoin whales are seen as a major factor in the rise and fall of cryptocurrency prices especially when they dump so much coins on the market.
The crash of 2018 was blamed largely on these so-called bitcoin whales who sold large portions of their BTC holding when the coin reached all-time highs. “A lot of them [bitcoin whales] sold, in early 2018, that’s dry powder, they’re starting to put that to work,” he told Bloomberg.
If these whales are beginning to buy again, it makes sense that prices will go up. The manner in which the bitcoin Bull Run started—gaining 15 percent in minutes—indicates a sudden increase in demand for bitcoin.
Bitcoin Bull Run Came Earlier than Expected
As Smartereum reported last month, Lee had predicted that the next of bullish bitcoin trend would start later this year, around August. In an interview with CNBC at the time Lee said:
“If Bitcoin holds above $4,000, it’ll cross its 200-day [moving average] by August, so I think the outside window is five to six months before Bitcoin starts to look technically like it’s back in a bull market.”
He has often spoken about a coming bitcoin bull run and earlier this year encouraged bitcoin holders to hodl over a space of12 months in order to benefit from what he called the 10 best days of bitcoin where the cryptocurrency “drive all the return.”
Bitcoin (BTC) Price Today
At the time of writing 1 BTC to USD is trading at $5,149 having maintained its support in the last two days. The coin market cap has grown over $90 billion while the bitcoin dominance dropped to 50.5 percent of the entire crypto market.