One of the founders of Fundstrat Global Advisors, Tom Lee, said that lowering the discount rate by the US Federal Reserve will stimulate further Bitcoin growth. According to him, the discussion of this topic has made investors anxious, which led to the correction of the main currency.
“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,” told Lee.
According to the expert, Bitcoin corrections are temporary. In fact, the coin is gradually gaining momentum, increasing capitalization even despite the depreciation. Tom Lee predicts that the first cryptocurrency will be able to update the historical maximum of $20,000 by the end of this year. The general situation in the cryptocurrency market also encourages investors to make large investments.
“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.” - he said.
For the first time since 2008, the US Fed lowered the discount rate by 25 basis points. According to many experts, this decision should affect not only the cryptocurrency market but also the entire US financial system.