While the Chinese authorities again and again prohibit cryptocurrencies, and American regulators refuse to give green light to cryptocurrency ETFs, some well-known participants of this space continue to count on the fact that by 2020 the price of bitcoin can reach the level of $60,000.
Commenting on the negative news this week, co-founder of BTCC Bobby Lee and analyst of Fundstrat Global Advisors Tom Lee said that they expect a drastic change in the behavior of the market.
“When bitcoin passes the $60,000 level in the coming years, its total turnover value will be $1 trillion,” Bobby Lee wrote on Twitter. “This will be a huge achievement for bitcoin and will lead to a price stabilization, a higher world liquidity and even faster distribution on a global level.”
The bitcoin rate showed stability against the backdrop of the US Securities and Exchange Commission (SEC) refusal to launch Bitcoin-ETF and the growth of the number of short positions for the largest currency within this week. To thicken the colors, China tried to expand its last year ban, this time vetoing the holding of cryptocurrency events in one of the districts of Beijing and calling payment applications to fight against over-the-counter trade in cryptocurrencies.
Tom Lee of Fundstrat, in turn, pointed to macro factors, which, in his opinion, are necessary for a repeat of the scenario of the end of last year in the market of cryptocurrencies. He believes that the growth of emerging markets will be the key to the next jump in bitcoin, as the growth and subsequent decline of the cryptocurrency market coincided with the similar behavior of the MSCI emerging markets index relative to the S&P500.
In a conversation with CNBC, he noted:
“Hedge funds usually lease shares in emerging markets, that is, they take risks and refuse them. When they refuse to risk, bitcoin also suffers. If you live in a country with an emerging market and see that your stock market is seriously declining, it means that you have less money to buy bitcoin, which also affects the network effect.”
On CNBC, Tom Lee supported his earlier one and said that in 2018 the pair BTC/USD could reach $20,000.