Fundstrat Global Advisors co-founder Tom Lee believes that recent interest rate cuts in the United States by the Federal Reserve are a boon for Bitcoin.
"Bitcoin's becoming increasingly a macrohedge for investors against things that could go wrong. Rate cuts are adding liquidity. Liquidity is pushing money into all these risk assets and also hedges, which is helping Bitcoin."
Lee delivered a couple more general remarks about Bitcoin, which climbed back above the $10,000 mark earlier today.
In terms of price, Lee thinks it is plausible for the coin to retake its all-time high by the end of the year.
"We don't have a target for Bitcoin, but the prior high was $20,000. I think there's a good possibility that Bitcoin reattains that high this year."
Lee also commented briefly on Federal Reserve Chairman Jerome Powell's stated concerns about Facebook's proposed Libra stablecoin.
"Libra is quite different in its architecture from Bitcoin, so I think that some of his comments are fair about Libra, but they don't actually apply to Bitcoin."
Similar to Tom Lee's remarks about Bitcoin being increasingly a macrohedge investment, the CEO of VC firm Social Capital, Chamath Palihapitiya, recently went so far as to call it the single best hedge against the traditional financial system.
Palihapitiya said in a CNBC Squawk Box interview on July 9:."It is the single best hedge against the traditional financial infrastructure. Whether you support fiscal and monetary policy or not, it doesn't matter: this is the shmuck insurance under your mattress."
Fundstrat Co-Founder Tom Lee: US Fed Rate Cuts Are Helping Bitcoin
gepubliceerd op Jul 31, 2019
by Cointele | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.