Zhao Dong, one of China’s most influential bitcoin billionaires and a well-known over-the-counter (OTC) trader, said that he thinks the cryptocurrency market is poised to take off within the next three months.
Known as a shareholder of cryptocurrency exchange Bitfinex and the founder of crypto lending platform RenrenBit, Zhao recently took to Weibo (China’s equivalent to Twitter) to give a prediction about the crypto market.
“The next three months could be the last opportunity for bottom fishers, and after that, the crypto market will enter Spring and then Summer, estimated to rally together with China’s stock market in 2021,” he wrote. “There’s always ups and downs, just like the cycle of the seasons.”
In November 2018, the bitcoin tycoon presented his theory that the bitcoin market has four seasons for the first time, claiming, “we’re now still in the autumn time of bitcoin, next year (2019) would be the winter.”
Bitcoin surprised its investors after unexpectedly tripling in price in less than three months, from $4,000 at the start of April 2019 to over $13,000 in late June 2019. The price then stayed sideways, hovering around the $10,000 level from July 2019 to September 2019, Zhao expressed his view that bitcoin might see a big drop in the next three months before the beginning of 2020.
Many cryptocurrency investors have deemed Zhao a legendary figure after learning about his experience in the space. Zhao entered the bitcoin market in 2013 with 10 million yuan of initial investment, and soon that 10 million yuan brought him 100 million yuan amid the bitcoin price pump that year. Overoptimism and misjudgement quickly led him to open heavily leveraged positions and, as a result, Zhao found himself 60 million yuan indebted after losing 9,000 BTC in a single day (February 10, 2014). He once thought of killing himself but managed to pay back all of the debts within two and a half years.
This veteran investor is not the only one who is confident about the anticipated bitcoin rally in 2020, when the “bitcoin halving” will happen. Cybersecurity expert John McAfee said in July 2017 that 1 BTC would be worth $500,000 by the end of 2020, and, in his latest tweet, he claims that “it is mathematically impossible for bitcoin to be less than $1 million by the end of 2020.” Tom Lee, co-founder of investment advisor Fundstrat, believed that the price of bitcoin would be valued at $91,000 in 2020.