It has been yet another eventful week for “magic internet money.” Bitcoin, which leads the cryptocurrency bandwagon in the financial market, has been in the headlines recently owing to two key comments. First, it was the Chairman of the Federal Reserve talking about it as an alternative to Gold. Second, it was the President of the United States releasing an anti-Bitcoin statement. However, in the world of virtual assets, there is nothing like negative publicity.
Tom Lee, Fundstrat’s Head of Research, expressed his opinion on Bitcoin’s current position in the market.
In a recent interview with Yahoo Finance, Lee stated that cryptocurrencies like Bitcoin were becoming the mainstay now, following the attention they had brought upon themselves. Lee stated that with an increase in the virtual asset’s impact in the industry, Bitcoin would evolve more with time, in terms of nature and fundamentals.
Lee added that Bitcoin would evolve more with respect to “macro” related functions, after pointing out that Bitcoin was up in 2019, even though the U.S dollar was comparatively weak.
“I think the macro connection rises but it is so good for volatility because today crypto is a lot only a couple of large wallets and some retail. There isn’t systematic institutional buying that is why there is such huge volatility so I think in a world where there are institutions, the prices and liquidity are lot greater, and it is great for the relative performance of Bitcoin.”
Giving his two cents on Libra, Tom Lee spoke in favour of Facebook’s proposed crypto-asset and believes that the launch of Libra would eventually assist more users to get into the world of cryptocurrencies. Libra’s impact will be perceived as “negative,” but it would hugely successful, he added. However, Lee stressed that the future of crypto-assets would definitely be prosperous, with our without Libra’s influence on the market.