Tom Lee, who works as Bitcoin analyst with Fundstrat has remarked that he feels cryptocurrencies, just like developing, emerging markets, could end on a rather high note at the close of 2018. Lee made this interesting prediction while appearing for an interview with the CNBC on 25th August, 2018.
The Fundstrat Global Advisors analyst, who serves as their research head, said that he believes that it is entirely possible for Bitcoin to bounce back and ride the wave all the way up to $25000 by the time this year ends. Lee made this approximation on the basis of how the prices of Bitcoin (BTC) made BlackRock iShares MSCI Emerging Markets ETF (Exchange Traded Funds) relate to each other. Lee thought it was important to note that correlation between the two markets which seem to be running almost parallel to each other. He added that given both industries had seen a peak during end-2017 and beginning of 2018 and gone on to see a downward spiral or a slump after that, similarities between the two were particularly clear. As per Lee’s comments in the interview, latest activity on the trading front reveals that hedge funds are no longer investing in funds related to emerging markets since they have high levels of market sell-off risks, which consequently triggers fewer buyers for Bitcoins. Lee is convinced that if the emerging markets change in terms of their direction any time soon, it would lead to a change in the market of Bitcoin as well. He opined that the correlation between the two industries will continue and a turn in the fortunes of one will definitely bring about a change in the fortunes of the other.
While speaking to the interviewer, Lee also noted that the times are changing for emerging markets as well as BTC, which will only be accelerated further if US Federal Reserve no longer introduces frequent and high hikes in interest rates.
In the early part of last month too, Lee had remarked with conviction that BTC had the potential to reach anything between $22000 to $25000 by the close of this year. In early August, Lee had again gone on to say that Bitcoin should not be termed “broken” as long as it maintains the present prove levels