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Bitcoin could soar to $40,000 if it breaches $10,000 mark, claims Fundstrat’s Thomas Lee

Sahana Kiran

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The world’s premier cryptocurrency, Bitcoin, has had a great market run since April 2019. After months of sluggishness and sideways movement, the coin hit its 2019 peak after it briefly breached the $9000 mark on Coinbase in May. However, Bitcoin couldn’t sustain its value as soon enough, the coin tumbles back down to rest at a price below $8000. 

In an exclusive interview with Chepicap, Thomas Lee, Co-founder of Fundstrat Global Advisors, claimed that Bitcoin might go up to $40,000, if it breached the $10,000 mark. He cited a range of factors that according to him, were acting as catalysts to the potential surge.

According to Lee, Bitcoin could rally by 200-400% once its FOMO levels are breached. Lee cited previous bull runs and FOMO periods to make this claim, stating that this is how Bitcoin could theoretically reach $40,000

Lee added,

“That’s what FOMO looks like. But, I’m not saying it would go to $40,000.”

Bitcoin was valued at $8,098 with a market cap of $143 billion, at press time.. The 24-hour price change indicated a rise of 1.42%, while the 24-hour trading volume was $17 billion. Most of the trading volume came from BitMEX exchange via the trading pair BTC/USD.

Lee also spoke about a potential pullback, if Bitcoin does indeed breach $40,000. He believes that the pullback would be shallow due to halving and the increase in on-ramps would further increase the base of Bitcoin holders.

Lee stated,

“Cryptocurrency’s value comes from network value and adoption. The number of holders of crypto wallets are tiny today, when compared to Visa and Mastercard and I think there’s a lot of upside.”

He added that halving and mining will be the major catalysts for any kind of surge, with the entry of non-financial institutions to the field of crypto, like Facebook, further spurring crypto-adoption. 





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Sahana is a journalism graduate, who is currently experiencing the work life. She has writing experience in print media and is here to explore the crypto world.

Bitcoin

Bitcoin is an enterprise; its users are comparable to traditional shareholders, claims Goldmoney Founder

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Bitcoin: Age old discussion about Bitcoin being a commodity or security brought to life; Could it be a security?
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Bitcoin was conceived in the backdrop of banks bailouts and the 2008 financial crisis. The recession and the loss of faith in banking, financial institutions gave Bitcoin a platform to rescue the ones affected, giving them hope for a better financial system without the hassle of corrupt institutions. With the rise of Bitcoin’s fame, both in the darknet and in the mainstream, questions about its regulations had to arise.

The question was put to rest when the SEC/CFTC ruled Bitcoin as a commodity and taxed it. However, Goldmoney’s Roy Sebag brought this discussion up again recently in his tweet thread, where he said that Bitcoin as an enterprise is working towards its good, comparing its users to traditional “shareholders” among other things, while concluding that Bitcoin is a security. He tweeted,

“Is Bitcoin a security? <10 years old so regulators haven’t even had enough time to truly learn how it works (think Napster or Kazaa in early days). Miners are clearly issuing coins and responsible for governance, an absence of formal relations among them is irrelevant….”

In successive tweets, Sebag attributed miners with the role of “stewarding” the so-called enterprise. In return, these miners get paid in “direct fees” or in “share appreciation.” In Bitcoin’s case, it is the mining reward, which is “BTC”. Similarly, buyers are compared to “shareholders” with a common interest in the enterprise, i.e. profit. Sebag added,

“Coins trade at exchanges. The common enterprise is designed for the price appreciation of coin.”

Bitcoin could face a shutdown by the government, just like it did with big players in file sharing, said Sebag, who added that Bitcoin could also be interpreted as a security under the “34 act of the SEC.” The Goldmoney Founder concluded that “this realization rests on the belief that neither Bitcoin nor any common enterprise is truly decentralized.”

However, his inputs weren’t very well-received by many in the crypto-community. Casa’s CTO Jameson Lopp refuted Roy Sebag’s ideas, tweeting,

“Roy will believe what he wants to believe, though if he’s not actually participating in Bitcoin then his beliefs are irrelevant to its consensus formation.”





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