On July 11 President Donald Trump tweeted that Bitcoin, Libra Facebook and all other cryptocurrency are basically garbage compared to the US dollar. Now Tom Lee has a response.
Bitcoin: Value Saver or Choice Criminal Asset?
Earlier this week US Federal Reserve Chairman Jerome Powell made a wave of media and rocked Twitter crypto when he suggested that Bitcoin is a speculative value store whose function is similar to investing in gold. President Trump, who is often at loggerheads with the Federal Reserve, quickly responded tweeting that Bitcoin is not money and is only a speculative instrument that is often used to facilitate crime.
Now, the chief analyst and partner of Fundstrat, Thomas Lee weighed about this problem and according to him Trump's tweet will have an unwanted effect by bringing more attention to Bitcoin. Lee explained that Trump underestimated Bitcoin, Libra Facebook, and cryptocurrency in general "made 99% more aware" of Bitcoin and quite funny Trump's signature phrase "Bad publicity is sometimes better than no publication at all."
All News is the Good News
Bitcoin is growing out of concern whether it's FUD or bullish news and Lee is convinced that as cryptocurrency grows in popularity and holds more macro Bitcoin connections to commodities and traditional markets will lead to greater correlation between cryptocurrency and the stock market.
According to Lee, this is not always a bad thing because now exchanges and some large wallets store crypto in large numbers and this is why there is strong volatility. Lee believes that more institutions are involved with cryptocurrency, prices and liquidity will increase.
Bitcoin Bullish on Trump Tweet But When Moon?
When asked about the future of Bitcoin prices, Lee was not shy share his estimate and explained that currently Bitcoin is trading at a level that is only seen 3% of its historical trading time line. Lee later said that historically bitcoin has risen 200 to 400% over the next 4 months and when applied to today's price action, this is the same as the price of Bitcoin of $ 20,000 to $ 40,000 in Q4 2019.
Yahoo Finance host Zack Guzman then asked Lee to share his thoughts about $ 13,400 into a strong level of resistance for Bitcoin and Lee said that currently mainly retail investors and whales that trade crypto and technicians are very important to this crowd.
Lee agreed that $ 13,400 functioned as a strong short-term resistance but later denied that in finance there was no such thing as a triple top and if this concept applies to Bitcoin then we can expect digital assets to explode through resistance in the third. try.
Then on his Twitter page, Lee did it to admit that there is one thing that can cause major hangups for Bitcoin and cryptocurrency as a whole but realistically such extreme size is not possible.
Do you think Thomas Lee is right about his Bitcoin predictions? Share your thoughts in the comments below!
Image via Shutterstock, Source via Bloomberg