While the Chinese authorities again and again prohibit cryptocurrency and us regulators refuse to give the green light to crypto-currency ETFs, some well-known participants in this space continue to expect that by 2020 the price of bitcoin will reach $60 000.

Commenting on the negative news this week, co-founder of BTCC Bobby Lee and analyst Fundstrat Global Advisors Tom Lee said that they expect radical changes in the behavior of the market.

“When bitcoin will pass $60 000 in the coming years, its total turnover cost would be $1 trillion,” wrote Bobby Lee on Twitter. “This will be a great achievement for bitcoin and will lead to stabilizing prices, higher global liquidity and the even more rapid spread on a global level.”

When #Bitcoin passes the $60,000 price level in the coming years, it’ll reach a total circulation value of $1 Trillion. That will be a huge #milestone for $BTC, and it’ll lead to more price stability, higher global liquidity, and even faster adoption worldwide. #VirtuousCycle

— Bobby Lee (@bobbyclee) August 24, 2018

The bitcoin exchange rate has shown stability on the background of another failure of the Commission on securities and exchange Commission (SEC) to launch a bitcoin ETF and a growth in the number of short positions on the largest cryptocurrency in the course of this week. To exaggerate tried and China, continued to expand last year’s ban, this time by imposing its veto on the holding of cryptocurrency events in one of the districts of Beijing and urging payment applications to actively deal with the OTC cryptocurrency trading.

Tom Lee of Fundstrat, in turn, pointed to the macro factors, which, in his opinion, necessary for the repetition of the scenario of the end of last year the market of cryptocurrency. He believes that the key to the next leap of bitcoin will be the growth of emerging markets as the growth and subsequent decline of the cryptocurrency market coincided with similar behavior of the emerging markets MSCI index relative to the S&P 500.

In conversation with CNBC, he noted:

“Hedge funds typically borrow shares in emerging markets, that is, they take risks and abandon them. When they refuse the risks, bitcoin suffers too. If you live in a country with a developing market and see that your stock market seriously decreases, it means that you have less money to buy bitcoin, which also affects the network effect.”

In a live CNBC Tom Lee was supported by its earlier and said that in 2018, BTC/USD may reach $20 000.

Discuss current news and events on the Forum

Source