Co-founder of analytical Agency Fundstrat Global Advisors and a renowned expert on issues of crypto-currencies from wall street, Tom Lee (Tom Lee), still considers that the exchange rate bitcoin (BTC) will rise to $20 000 to the end of the year. The forecast analyst has once again announced the release of the program “Fast Money” on CNBC last Friday.
Lee wryly noted that “trying to change the calendar year” to meet his forecast, and remains confident in the correctness. According to experts from wall street, to influence the exchange rate of bitcoin can hedge funds, which now play an important role in the cryptocurrency market. Some of crypto currency exchange the United States was able to attract the attention of such funds, which caused the growing trade BTC in 2018.
The second factor affecting the rate of the main cryptocurrencies, If called, oddly enough, quotes the traditional stock. The analyst showed a graph showing the relationship between the price of bitcoin and the stock index S&P 500. This index reflects the dynamics of value of shares of 500 US companies with the largest capitalization. On the chart there is a correlation between the rise of emerging markets and increase the rate of BTC at the end of 2017. However, since both measures only decrease. Lee explains this relationship on two factors: the first is all those hedge funds that operate in emerging markets, and the second — the so-called wealth effect. When a lot of people successfully invest in emerging markets, they subsequently have more money to invest in cryptocurrency. Also, the reverse was true.
In addition, Lee outlined some of the difficulties facing bitcoin trading.
“There are still difficulties with how to store bitcoins”, — said the expert.
Thus, investors in hedge funds don’t want to take the responsibility of storing cryptocurrency assets. As an example of a promising project in this area If results in the platform Bakkt, created the new York stock exchange, Microsoft and Starbucks. Bakkt was designed to facilitate the access of institutional investors to digital assets and simplify the process of trading.
Lee also said that the current bitcoin market gets a negative rating from customers. Created by analyst “the Index of poverty bitcoins” (Bitcoin Misery Index – BMI), which reflects the mood of the holders of bitcoins and makes it clear whether at the moment to buy cryptocurrency or not, now is 36. This figure can be quite low, but this is a good time to invest in BTC. The interlocutors in the transfer drew a parallel with last year: then the rate of bitcoin jumped from $6000 to $20 000 at the end of December.
Whether long known for its positive predictions about the value of BTC. In March, the analyst predicted the growth rate to $91 000 in 2020. Later, in may, the expert have reduced the time forecasts and predicted exchange rate of bitcoin rise to $25 000 by the end of this year. At the time of publication the price of bitcoin is hovering around $6725, according to CoinMarketCap.
