One of the biggest Bitcoin bulls of all time, and the co-founder of Fundstrat Global Advisors, Tom Lee, has once again reaffirmed his stance on Bitcoin and it’s massive potential this year. For those of you who don’t know, Lee first made the prediction about Bitcoin reaching (at least) $30,000 in 2018 – to later modify the number to $25,000 and now reaffirm his decision but stick to the $20,000 price margin.
Lee also said that with this, he is “trying to change the calendar year” with respect to his prediction but still remains bullish about it. He is confident that hedge funds are playing a bigger role in the Bitcoin market, which he thinks that has an impact on its price.
As he said on the “Fast Money” show aired on CNBC this Friday:
“I do think in 2018, trading has shifted,” Lee said. There is now more bitcoin trading in the U.S. as certain exchanges have attracted hedge funds. “I do think hedge funds are playing a role right now,”
Another factor that he pointed out was the impact of traditional stocks on Bitcoin’s price. After presenting a chart where he showed the link between Bitcoin and the S&P 500 index, Lee said that there are two factors that connect the two indicators – the hedge funds which “rent” emerging market stocks and the “wealth effect” which is basically the impact of stock activity on Bitcoin buying.
“That affects the network effect because you can’t buy bitcoin,” Lee said.
However, even Lee recognized some challenges that are facing the mainstream Bitcoin trading. As he said in the end:
“There’s still this complication about how you store the bitcoins.”
Nonetheless, Lee remains bullish about Bitcoin’s price.
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