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Despite Bitcoin taking a bit of a hit recently, losing its bullish momentum and falling back below $10,000, one of its biggest supporters in terms of predictions, Tom Lee, is still positive. 

Senior analyst at market strategy and sector research company Fundstrat Global Advisors Lee has climbed onto the bandwagon by saying that he believes that Bitocin is a safe haven for investors in a time when global financial uncertainty makes it less appealing to be in the traditional markets, and more appealing to look to alternatives. 

More so, the analyst who has been known for making highly positive, and often over inflated predictions for the top cryptocurrency, believes that Bitcoin will be at a much higher point than it is now by the time the year comes to a close. Bitcoin last hit a new all time high in December 2017, and according to Lee, the end of this year may see it surpass that $20,000 mark. 

Part of the reason for this climb to new heights may well be attached to Lee’s first assertion of Bitcoin being a hedge, as he feels evidence in other countries were there is true turmoil proves the power of Bitcoin. 

If there is an economic collapse soon, which is being predicted, the path may well push people to Bitocin and boost the price of the coin before the year is out.

The global hedge argument

Some, like Lee, are saying that Bitcoin operates like a global hedge because it has been seen to be in high demand in places where the financial system is already in ruins. In Venezuela, and Zimbabwe, their currency has been inflated to be unusable, and in those places, Bitcoin is thriving. 

At the same time, while the US, Europe, and China all speak of applying policies to try and stave off an economic collapse, people are getting nervous about their investment. 

When asked directly “whether Bitcoin is a genuine safe haven” during an interview on the Fox Business channel, Lee confirmed his position:

“Yes. You can see it in markets. Where there’s turmoil, the local Bitcoin prices tend to surge and trade at a premium, because people are trying to find ways to protect their money. So yes.”

On its way up

Regardless of how Bitcoin can be seen as a hedge, and before the news of turmoil broke out, Lee was also quick to point out that Bitcoin, as an asset, had performed incredibly well over the year thus far. 

He pointed out that at the end of last year the coin was valued at $3,000, and since then rose to the $10,000–12,000 levels. The analyst also noted that Bitcoin “is just resting”, and can show a significant rise in its price by the end of 2019, saying:

“I think it’s going to be much higher by the end of the year, and potentially at a new all-time high. I think anyone who wants to have a 2% or 1% allocation to Bitcoin as a hedge against a lot of things that could go wrong — it’s a smart bet.”

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