The interest in Bitcoin [BTC] has not waned with Tom Lee, the Co-Founder of Fundstrat pointing out a correlation between the cryptocurrency’s rise and fall with the status of emerging markets. The crypto bull also stated that Bitcoin will close the year on a high.
The analyst mainly based his arguments on the Bitcoin slump which has seen a 60% fall in the cryptocurrency’s value when compared to its peak in January 2018. Tom Lee stated that the cryptocurrency industry has been regarded as the sector that is rented and not as something that is established and trust-inducing.
He went on the say that the correlation between emerging markets and Bitcoin becomes very evident in a risk-averse society such as ours. According to him, the emerging markets do well when the risk is on ie. when the relevant community makes a leap into something that is upcoming and vice-versa when the risk is off.
He also pointed out the relationship between coin markets and emerging market equities, saying that at the moment when the market is bearish, the value of Bitcoin has also reflected the same. At the time of writing, Bitcoin was actually beating market expectations by trading at $6734.51, a 3.45% weekly increase.
Lee also went on to speak about the cryptocurrency adoption trends occurring in several countries across the globe, a factor, according to him, in the fluctuating economy. He gave his two cents on the various capital control measures implemented by individual countries. Lee spoke about how the discussion of cryptocurrencies in countries such as Japan, China, and South Korea has brought Bitcoin-related discussion into the realm of mainstream news.
The analyst then stated that the Dollar is a strong component and if the population in a region wants to own a risky product then the wealth effect will decide on its bearish or bullish trend. He believes that the reason why countries seeing a boom in emerging markets cannot own products is due to the lack of capital.
He then shifted his discussion to what lies in store for Bitcoin and cryptocurrencies in general. Lee focused on the market trends and signals and said:
“The market has been quite confusing for a while now. The existing signs point out to a recession like financial ecosystem and that is just baffling.”
According to Lee, the emerging market stocks are quite attractive right now, seeing a rising adopting rate, ease of marketability and strong developmental index. He stood on his belief that Bitcoin will reach a peak of $25000 and stated that the phenomenon is still possible. The statement was a reflection of Michael Arrington’s comment earlier in the year when he had stated:
“My entire life has been in cryptocurrency, we’re on bullish on it. But I’m always an optimist, right? I think we’re still gonna hit $25,000 this year easy and I sure hope we’re at a low right now.”
Lee backed his statements by placing the fact that Bitcoin prices have been relatively unmoved despite the negative backlash against the cryptocurrency over the past few weeks. He was taking the examples of the Bitcoin ETF rejection as well as the latest news that China was on a mission to stop Bitcoin trading in the country. China’s stance on Bitcoin was made quite clear when WeChat, leading social media messaging and mobile payment application in China, banned original content related to cryptocurrency and blockchain technology in China.
The main reason for the ban is stated to be the promotion of ICOs and cryptocurrency trading. This stands against the recent law passed by the Chinese government.
The Co-Founder of Fundstrat reaffirmed his stance by saying that the market will remain majorly bullish from now on, which will help in achieving the $25000 mark.
Subscribe to AMBCrypto’s Newsletter
LocalBitcoins see steady trading volume in Russian Ruble following cash-trades exodus
LocalBitcoins, the Finland-based peer to peer cryptocurrency exchange, announced earlier this month that trading in a country’s national fiat currency will be disallowed, leading many in the community to believe that countries not on the frontlines of the digital asset world would be hit the hardest. Three weeks on, some defiant trends have been noticed.
According to CoinDance, the weekly LocalBitcoins chart revealed that the Russian Ruble [RUB] recorded towering volumes, even after the June 1 cash-exodus announcement. With many expecting a drop in volume, other top countries have also seen the absence of an immediate plummet, with Moscow being the stand-out.
The first week of June saw a notable high of RUB 1,174 million in volume owing to the native currency, while the aftershock of the announcement dropped the same down by to RUB 1,104 million by the second week. The next two weeks saw the volume surge back to its May 2019 heights, with the week beginning on June 22 recording a volume of RUB 1,188 million in volume.
On the basis of the above data, Russia is indeed a positive LocalBitcoins market.
The Finnish exchange has also been popular in South America, with its weekly volumes doing exceedingly well in the markets of Colombia, Venezuela, Peru, Chile, and Argentina, with Brazil, the only Latin American country left-out.
Buenos Aries saw its weekly volume from the initial weeks of June to mid-June drop from $13.71 million to $10.53 million, following the cash-removal announcement. In terms of the Colombian Peso, CoinDance stated that the number for the same was $9.98 billion towards the close of May 2018, and dropped to $7.16 billion by the first week of June. However, the same has since stabilized to stand at $9.2 billion.
LocalBitcoins began mulling the possibility of phasing out fiat currency trades following its inclusion under the supervision of Finland’s financial watchdog, the Financial Supervisory Authority [FSA] in March 2019. This inclusion was made days after Finnish legislators stated that cryptocurrency-based assets would be given legal status under the law. However, the act will officially come into force later in November 2019.
Additionally, several changes were made to the country’s Anti Money Laundering [AML] laws and Countering Financial Terrorism Act [CTF], which would require the exchange to follow the stated guidelines.
Subscribe to AMBCrypto’s Newsletter