Have no fear, Bitcoin to double from here. Altcoins (Steem) to do even better.
In a report out from Tom Lee today, he is just as bullish as ever on bitcoin and the entire altcoin market.
Tom Lee stated that he thinks that based on historical trends, bitcoin will hit $20k by June.
The recovery in prices is roughly equal to 1.7 times the fall according to Lee, in terms of time.
What does that mean?
It means that the recovery takes close to 2 times the amount of time as it takes for prices to reach their lows.
This latest bear period lasted for about 50 days, which means it would take roughly 85 days to reach new highs after dropping by more than 60% when you apply that 1.7 times metric.
Which would place the time for bitcoin to reach new highs right around June.
A double in bitcoin sounds great, but what if I told you that you might be able to best those returns buying some of the altcoins?
According to Lee, he fully expects to see another altcoin super cycle like we saw last year.
We saw one in the Spring of 2017 as new exchanges came online, and we saw another one in late 2017/early 2018 as new retail investors entered the space for the first time.
Lee didn't explicitly say which altcoins he expected to outperform bitcoin, but he has hinted at the likes of Ether, EOS, and Neo in the past as he said he thinks the fabric chains/coins will continue to do very well.
In a previous interview he mentioned many of the coins listed in the top 30 by market cap would significantly outperform bitcoin this year.
In fact he referred to 2018 as the the great rotation and the year of the altcoin:
(Source: https://www.cnbc.com/2018/01/29/2018-might-be-the-year-of-the-great-crypto-rotation-tom-lee.html)
He seemed to hint strongly at the top 10 coins doing the best.
We need to get steem in there ASAP as it might be seen as somewhat of a fabric chain itself with the introduction of SMTs (Smart Media Tokens).
The bad news in all of this is that Lee said he expects to see money start flowing out of those smaller market cap coins back into the top market cap coins, coins with less than a $3 billion market cap.
Which means we need to get steem to cement it's name in there with the top couple of coins before this great rotation really starts to kick into high gear, if it hasn't already.
The launch of SMTs is really the game changer here and hopefully we can get that launched as soon as possible.
The link to the SMT whitepaper can be found here:
https://smt.steem.io/smt-whitepaper.pdf
From everything I have read it looks like they could be ready by the end of Q2, which would put the launch some time in the June time frame, right when bitcoin is making new highs. ;)
I would add a month or two though on to that expectation, just to be safe.
Stay informed my friends.
Image Source:
https://www.cnbc.com/2016/09/30/tom-lee-these-tech-stocks-will-beat-the-market.html
Follow me: @jrcornel
I mostly agree with Lee, but I think another sell-off in stocks will put a damper on any bull market in cryptos.
As for Steem, we needs to get Steem and SBD pairs on many more exchanges to improve liquidity and access for investors.
Yesterday, more than 60% of Steem volume was on Upbit's Steem pairs:
https://steemit.com/steemit/@techwizardry/we-need-more-exchanges-upbit-s-steem-krw-pair-has-more-volume-than-bittrex-and-poloniex-combined
Good point and also good info here. I had no idea Upbit was that much of the volume. On most days when I check Bittrex usually dominates the steem volume. Thanks for the heads up!
I think the worst is behind us now. We had a serious correction, now there should be a little sideways movement, and then the next run up. I'll be HODLing.
With SMT release STEEM not only join the fabric chain but also it has proven platform with almost million userbase (e.g. Steemit, Dtube) and record transactions with its side while EOS/NEO has to prove they can deliver the product. With SMT, STEEM could (should) have advantages over other fabric chain with lofty promises but no proofs yet (e.g. userbase or DApps). STEEM also has advantage of solving the issue of distribution being the early mover and on-live for two years where is no silver bullet for fair distribution (e.g. PoW, PoS etc.) other than dilution with time.
Seriously! Steem should be much higher in market cap considering that it does have a working product, and a unique one in the crypto space at that. Other coins are competing with each other within the cryptospace, smart-contract tokens, privacy coins, etc., while Steem has a monopoly over the social media/blogging aspect of the blockchain.
You make it sound like it is economically desirable for people to make money without corporate getting a cut. "Don't you know that's socialism?"
I completely hear you, and that's what scares me. I see this like you, product, a new way of monetizing time and creativity – it's amazing.
But because it could be that way is a problem. And it's a real problem. Can't have this shit get away from the "serious" traders and the trading houses; that'd be chaos!
Steem AND SMT could be deemed a threat to both money and work. I'd be afraid if I was a bigshot and knew what you and I believe about Steemit and the Steem blockchain.
Steem is seriously disruptive, I think, specifically because it has an ecosystem that goes along with it. The focus on content creation and self sufficiency on perceived value is an anathema to the "Box it up and ship it out and pay nobody" mantra of today's "bleeding edge" businesses.
I like it. I find the idea brilliant. I think it could make life better for more people.
All of these things combined, in my 45 years of experience, means that, what ever it is, it is a threat to the people who run the show.
Purpose of the STEEM blockchain is to tokenize the Internet (i.e. World). Steemit (i.e. Social Media DApp) is just an application running on the blockchain.
More: https://steemit.com/steemit/@lexiconical/what-if-steemit-really-is-just-a-beta-afterthought
Completely agree. It has a solid ecosystem and it's growing. It's unbelievable what we see here. The commitment and passion of most bloggers and the team behind Steem.
I could use another 150% increase hehe. HODLing on!
Nice post upvoted
What's your opinion please share on this post
How bitcoin will reach 20k in next 4 weeks interesting
https://steemit.com/bitcoin/@salahuddin2004/bitcoin-update-28-02-2018-current-price-usd10-430
It could happen. Though I think it may chop around a bit more first.
Thank you for your reply
This is good ideas @cryptoeagle, u are always thinking smart and fast, wish to work with u and i will really appreciate ur support from this moment boss
hell yes im still hodling for the double plus!! =]
Awesome @jrcornel. I think Lee's speculation based on Historical Trend is perfectly fine. I know $20k by June looks a lot of work but believe me we hit that mark a few months ago. So, from a drop of 60% we are going to see a high of only 50-55%
I think BTC has a potential to reach over $40K by end of this year. That's a digestible raise I could see. But in Crypto Universe, you never know anything. It could go to $100K or $0.
Coming to STEEM, people have been joining the platform like crazy. You can see how many people are generating content on daily basis. With the announcement of SMTs, I hope to see STEEM as $30-$40 by year end and $1000 in five years. Great times ahead. 🍻
Those numbers sound good to me, though I think it may take a little more time for steem to hit $30. Perhaps by the end of 2019. :)
I agree!! The future is bright!!
I personally am super invested into LISK. Super impressed with their relaunch, and their stress on user-friendliness and accessibility that will lead to mass adoption. They are focused on creating a product that the average consumer will be able to develop on and that is why it is my number one pick going forward.
Great news for crypto hodlers.
Not that we didn't know already, it is always delighting to hear it over and over again!
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SMTs will change the equation