Tom Lee Anticipates Strong Stock Market Performance to Boost Bitcoin Price

[sirty143]

In a recent appearance on CNBC’s Fast Money show, market analyst Tom Lee commented on the price outlook for Bitcoin and its connection with equity markets.

While looming fears of a global recession have sparked discussions on Bitcoin as a potential hedge, Lee says that the next Bitcoin BTC, 0.20% all time high could be the result of a stock market rally:

“I think Bitcoin has kind of stalled recently because the macro outlook has stalled. I think that in a world without trend, Bitcoin doesn’t go up. So, I think the next big catalyst is a decisive breakout in the equity markets, because I think once equities break to an all-time high, Bitcoin becomes a risk-on asset.”

Tom Lee’s firm Fundstrat anticipates the S&P 500 to make a run towards the end of 2019, with a year-end target of 3,125. At the time of writing, the index is sitting at 3,015, while its all-time high was 3,025 in late July.

Speculation on how Bitcoin will perform in a full-on global economic downturn is one of the hottest topics in the cryptocurrency community, as BTC rose to prominence when the global economy was already recovering from the 2007-2008 crisis – the BTC market has never been tested during periods of extreme global economic uncertainty.

While some contend that the security of the Bitcoin network and its fixed supply make it an attractive safe haven, others say that investors will shy away from an asset so well known for its volatility the next time the global economy shows serious signs of weakness.

Lee says it’s possible that Bitcoin is a good asset to hold both in times of prosperity and uncertainty:

“Bitcoin may be ambidextrous. You know, that it works well in a risk-on world, but as you start to get nervous, then you treat it like digital gold.”


Source: coincodex

[Aguacate_e]

Interesting!
We will see what happens with the price of bitcoin in the coming months.
Regards...