In a recent Tweet, the co-founder of Fundstrat Global Advisors, Thomas Lee, said that Bitcoin would not make a new all-time high until S&P 500 reaches record levels. As he explained Bitcoin has been rangebound because macro trendless.
Strong Global Risk Rally Could Help Bitcoin
Bitcoin has been growing around the world for over ten years. The digital asset started as a technological eccentricity and many enthusiasts consider it could become a store of value. Although these are processes that take long periods of time, the most popular digital asset could be benefited by a strong global risk rally.
Thomas Lee, a recognized investor and Bitcoin supporter explained that the best years for Bitcoin since 2009 where those when the S&P 500 surged over 15%. At the same time, Lee explained that Bitcoin has been rangebound because macro trendless that is confirmed by their Bitcoin Misery Index. This index fell from 66 to 50 a few hours ago.
Unpopular opinion, Bitcoin won’t make a new high until S&P 500 makes a new high.
– $BTC has been rangebound because macro trendless. Confirmed by our Bitcoin Misery Index falling from 66 (50 now)
— Thomas Lee (@fundstrat) September 12, 2019
Although there is no perfect correlation between the S&P 500 performance and Bitcoin’s performance, the comparative return chart of these two variables shows an interesting positive correlation with a few outliers.
During Lee’s presence on CNBC’s Fast Money, he explained that there is a correlation between crypto and the U.S. equity market. Moreover, he suggested that a new BTC all-time high would likely lead to another alt season.
In other tweets, Mr. Lee explained that anyone watching equities knows that an important moment is approaching for S&P 500. He has also mentioned that a breakout would help Bitcoin get closer to its previous all-time high.
Regarding an altcoin season, he commented:
“So, I think that may end playing out is S&P hits an ATH, Bitcoin reaches an ATH, which is not too far away for Bitcoin. Then, I think it will likely lead to the start of an alt season.”
Bitcoin was able to reach an all-time high back in December 2017 when it surged to around $20,000. After it, the most popular digital currency entered a bear market in which the virtual currency fell almost 85% in just a year.
Since it bottomed in December 2018, the virtual currency surged to $13,750 in June 2019 and it is now being traded close to $10,300. Bitcoin could continue expanding if the S&P makes new highs, according to Thomas Lee.