We’re switching away from Wall Street’s tug of war to focus on cryptocurrencies, and a call from the president of macroeconomic research firm Lamoureux & Co., Yves Lamoureux, who has made some prescient predictions on crypto (not to mention equities).
He said the so-called winter for bitcoin BTCUSD, -2.16% is over for now, with a forecast for the No. 1 cryptocurrency to reach $100,000 by later 2023, in a run higher that could last up to 2025.
“I’m not giving a major buy signal, I’m just saying, yes, you can start to buy a little bit,” Lamoureux told MarketWatch in a recent interview. Hovering at $30,000 and off more than 55% from a record high of $68,990 in November 2021, bitcoin meets much of his critiera to exit a bear market, he said.
But the crux of his call is based on an eclipse-like event expected in 2024 (he predicts around March), when rewards for bitcoin miners will be chopped in half. The so-called halving event occurs every four years, and is aimed at controlling the number of coins in circulation and support prices. The last one was May 11, 2020.
“One of the main things that drives bitcoin is supply,” he said. “There’s less supply, so there’s less coming to the market …that historically has always driven prices higher. What I’m saying is that it’s out of the narrative now.”
Lamoureux has shifted from advice earlier this year that investors should not chase bitcoin, but he said he always expected a brief bear market. Among his past calls, he warned clients about a skyscraper bitcoin top in November, just as it reached that record high, as well as predictions that panned out in early 2017 and mid-2020.
As well, sentiment for bitcoin is “super low,” he noted, which has been seen at other major bottoms.
But he advised investors buy a bit at a time, rather than make big bets as the road ahead won’t be straight up. “It’s always the same way. It goes up before the halving, kind of pauses, and then shoots up, so there’s two phases to it,” said Lamoureux.
Bitcoin reaching $100,000 will bring in a new wave of investors and attention, he said. But he is a classic market timer, doing well with bitcoin because he has bought and sold at the right moments. “When there’s euphoria, I get out, and when I see a lot of despair, negativity, like now, then I re-enter,” he said.
The investment community has soured a bit on the crypto sector thanks to the stablecoin debacle, fears of more regulation to come, and general bearish attitudes for assets such as stocks.
Lamoureux is only interested in bitcoin, and doesn’t “trust any of these stablecoin projects.”
“I’m interested in Bitcoin because it is the king and that’s where institutional money will flow first. So always stick with the best. Everybody wants to be bitcoin, but they’re not …don’t make it complicated, stick with bitcoin,” he said.
Don’t miss a new, deep dive on the sector from MarketWatch’s Frances Yue, who digs into where analysts think bitcoin and other cryptocurrencies are now headed.
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