What will be the direction of movement of bitcoin? This question does not give rest to investors around the world. Tom Lee, head of the research Department of the company Fundstrat Global Advisors, recently poyavilsya live CNBC program “Fast Money” and voiced his point of view on this market.
Lee, whose other name is the biggest bull of bitcoin on wall street, in its time, debuted in the show, drawing attention to the many positive signs. If again noticed that costs zero profit mining, combined with a favourable“network effects”, continue to significantly affect the value of bitcoin.
Next, Lee suddenly turned to this pointer, as the macro markets. Although it is not associated directly with the cryptocurrency, Whether considering it as the next “significant” state of bitcoin.
Macroindicators – numeric indicators used in macroeconomics and serves to reflect the economic condition compares the MSCI Emerging Markets Index, which measures the value of equity markets in global markets, and the American S&P 500 index.
Whether placed next to the indicator and logarithmic chart of bitcoin, to show viewers that it is possible to carry out communication between the two. MSCI Index in the past year skyrocketed in value just like bitcoin, although not significantly. It seems that this is not a one-way interaction, because bitcoin is experiencing a reversal of the trend, while macroindicators peaked in early 2018.
Scientific guru opened Fundstrat why the indicator should be interesting crypto-investors. Lee said:
“Why do we believe that they are connected? Here two factors .First, hedge funds typically rent emerging stock markets.They risk out of the risk zone. When they come out of the area at risk, then bitcoin suffers too. The second reason is the wealth effect. He means: if you live in an emerging market, and see how your stock market drops significantly, it means that you will have much less money to buy bitcoin”.
In other words, the head of Fundstrat believes that the growing inefficiency of markets is inherent in bitcoin. Later, speaking on the condition of the market, Lee added that the ecosystem of the trading has moved, which led the ambitious managers of macro hedge funds on BitMEX, where margin trading is booming.
Along with this notice, the funds are beginning to hire familiar with cryptocurrencies talented people right from the bench of the College that could affect the decision of a hedge Fund to apply to the cryptocurrency.
In conclusion, Lee drew the audience’s attention on Bitcoin Misery Index company Fundstrat, which assesses the General mood of the crypto-traders on a scale from zero to one hundred. At the moment it shows the high level of negativity is 36/100. Lee attributed this figure to the decision of the SEC practically to deny applications for nine ETF, for bitcoins, as well as steps by the Chinese government attack on the development and popularization of cryptocurrencies.
However, as consistently noted by the analyst, the index can be considered as an indicator that plays against the trend, and the low price may well be a prelude to a short-term or long-term rally of bitcoin. Host of CNBC Melissa Lee concluded the episode with a question about the forecast of the price of bitcoin is $20 000. With unfailing optimism, she said:
“I still think it is possible the price of bitcoin is $20 000 by the end of this year.”