Tom Lee of Fundstrat: The correlation between Bitcoin and emerging markets is a sign of the next reversal trend
Bitcoin analyst Fundstrat , Tom Lee, he said that the cryptocurrency "explosively could end the year higher , " citing a correlation between it and the emerging markets. Lee made his new prediction in an interview during CNBC's "Trading Nation" on August 25.
The Head of Research at Fundstrat Global Advisors has said that he "still believes it is possible" that the price of Bitcoin will increase to US $ 25,000 this year. Lee has based this assumption on the relationship between the price of BTC and the exchange fund iShares MSCI Emerging Markets (ETF) of BlackRock , which tracks large and medium-sized companies in emerging markets.
The "important correlation," according to Lee, lies in the fact that both markets run in parallel to each other, with both "really peaking" early in 2018, as "both were in a downward trend"
According to Lee, recent commercial activity shows that high-risk funds have stopped buying funds linked to emerging markets, due to the risks of mass selling in the market, which in turn leads to fewer purchases of Bitcoins.
As Lee believes, a change of direction in emerging markets would indicate a similar change in the Bitcoin trend:
In the interview, Lee noted that "the tide is changing" for both Bitcoin and emerging markets, especially if the US Federal Reserve . UU . It slows down its interest rate hikes.
In early July, Lee expressed his position that Bitcoin could reach between $ 22,000 to $ 25,000 by the end of 2018.
Earlier this month, Tom Lee said that Bitcoin can not be considered "broken" while maintain current price levels and volatility. At that time, he cited the numbers shown by the Bitcoin Misery Index ( BMI ) from Fundstrat, a tool that measures how "miserable" Bitcoin investors are, based on the price of the cryptocurrency and its volatility.
Source: CoinTelegraph
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by joseig from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.