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
US 2020 Presidential Candidate promises to provide better regulatory clarity on cryptocurrency market
Andrew Yang, the United States 2020 Democratic Presidential candidate, released a new policy for the regulation of the cryptocurrency space on April 20. The new policy statement titled ‘Crypto/ Digital Asset Regulation And Consumer Protection’, emphasized on the need for regulating the digital asset place, and also listed the actions Yang would do for the cryptocurrency market as the President.
Yang said on Twitter,
“New Policy #22 – Digital Asset/Cryptocurrency Regulation. Investment in cryptocurrencies and digital assets has far outpaced our regulatory frameworks. Investors need to know what their treatment will be in order to properly innovate in the U.S.”
On the official site, Yang stated that the cryptocurrencies “have quickly grown to represent a large amount of value and economic activity”. He further spoke about the lack of regulation of the cryptocurrency space, adding that the “patchwork of varying regulations” introduced by states has made it “difficult for the US cryptocurrency market” to compete with any other market, importantly China and Europe.
The Presidential Candidate further listed three key problems that needed to be solved, growth of cryptocurrency market being faster than that of the government’s response, differing regulations in different states, and uncertainty of the framework that would be unveiled.
Fang, a Twitter user, said,
“A candidate that is actually in touch with technology, blockchain and crypto. I missed the Bitcoin train but got in early on Ethereum mining: A significant % of my net worth is in crypto. So far I’ve done nothing but HODL. Our government has no idea what to do with digital asset”
Subscribe to AMBCrypto’s Newsletter
BitMax.io [BTMX.com] and EtherZero [ETZ] established Strategic Partnership
Bitcoin [BTC] and Litecoin [LTC] Price Analysis: BTC relishes bull’s company, while bear takes over LTC’s market
Blockchain Cruise takes place on the Mediterranean from June 9th-13th!
Bitcoin SV [BSV] gets hit with another reorg as multiple blocks get orphaned, including a 128 MB block
Stellar Lumens [XLM/USD] and XRP/USD Price Analysis: Sideways clamp holds strong as prices stagnate
Bitcoin SV [BSV]: John McAfee ‘sues Calvin Ayre in four different countries’; vows to bankrupt him
Cardano [ADA]: Proof of Stake [PoS] throws away expensive process & advances the network, says Charles Hoskinson
Cardano [ADA]: We will emerge from 2019 more decentralized than any other network, says Charles Hoskinson
Bitcoin [BTC]: Don’t buy into it if you are not ready to be rekt, warns Richard Heart
XRP takes another step into mainstream adoption as Skype hints a possible integration
Breaking: SBI Virtual Currencies delists Bitcoin Cash [BCH] in response to Binance’s Bitcoin SV delisting
Is John McAfee among crypto adherents who knows Satoshi’s true identity?
Bitcoin [BTC]: Officials crack down on massive BTC fraud in ‘largest pill seizure in the history of New Jersey’
Bitcoin [BTC], Bitcoin Cash [BCH] accepted as payments by Corporate Traveller following tie-up with BitPay