Bitcoin expected to post new wave of growth

Posted 01 August, 2019

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.

Previous story

01 August, 2019 13:39

← LedgerX comes top of US companies with physically-settled bitcoin futures

LedgerX has successfully become the first US-based company that launched physically-settled bitcoin futures. The company launched its new product on July 31. Once the platform called Omni comes on stream, US-based institutional and retail traders have become able to trade options and futures.

LedgerX comes top of US companies with physically-settled bitcoin futures

Next story

01 August, 2019 12:09

Chinese cryptocurrency rating demonstrates better bitcoin position →

The Chinese Center for Information and Industry Development (CCID), which works under the government of the country, has published another version of the rating of cryptocurrency projects.

Chinese cryptocurrency rating demonstrates better bitcoin position
Write a comment
 
Prove you’re not a bot + 6 = 19