Don’t look now, but bitcoin is showing signs of life

In a revival of sorts, digital assets are suddenly back on the rise. That’s a turnabout from late 2018, when even the staunchest bitcoin aficionado wondered if the end would ever be in sight for a brutal bear market that wiped more than $500 billion off the total value of all cryptocurrencies.

But something has changed: While the story of the turnaround in sentiment began with a one-day surge in bitcoin on April 2, a palpable pickup in broad market risk appetite has crypto advocates believing the prolonged winter for digital assets is in the rearview mirror.

“Risk appetite is positive for bitcoin,” said Thomas Lee, head of Fundstrat Global Advisors. “If the S&P 500 made a 2.5 standard deviation move [as it has done year-to-date] and investors are looking for vol [volatility] that’s building a base case for bitcoin.” Given this, Lee said bitcoin could top $10,000 this year sometime.

Lee has been one of bitcoin’s biggest bulls. In 2018, he predicted the price of the cryptocurrency would reach $20,000 by year-end. In November, he reduced his target to $15,000. Bitcoin closed the year below $4,000.

The turnaround in cryptocurrencies has echoed a rebound for the stock market. Both bitcoin and major U.S. indexes ended…

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