As China beefs up its cryptocurrency ban and US regulators reject more Bitcoin ETFs, famous faces are reaffirming their beliefs that Bitcoin prices could still hit up to $60,000 by 2020.
‘More Stability, Liquidity And Faster Adoption’
In the face of several regulatory setbacks for Bitcoin this week, BTCC co-founder Bobby Lee and Fundstrat Global Advisors’ Tom Lee both went on record in recent days to forecast a turnaround in the fortunes of the largest cryptocurrency.
“When (Bitcoin) passes the USD $60,000 price level in the coming years, it‘ll reach a total circulation value of $1 Trillion,” Bobby Lee wrote on Twitter yesterday, continuing:
That will be a huge (milestone) for (BTC), and it‘ll lead to more price stability, higher global liquidity, and even faster adoption worldwide.
When #Bitcoin passes the USD $60,000 price level in the coming years, it‘ll reach a total circulation value of $1 Trillion. That will be a huge #milestone for $BTC, and it‘ll lead to more price stability, higher global liquidity, and even faster adoption worldwide. #VirtuousCycle
— Bobby Lee (@bobbyclee) August 24, 2018
Bitcoin market sentiment failed to tank following the news that the US Securities and Exchange Commission (SEC) had rejected a total of nine ETF applications this week. Pressure from Beijing similarly failed to spark panic, marking a divergence in market behavior compared to similar announcements made in 2017 and the early half of 2018.
Lee Stands By $20k 2018 Prediction
On the topic of the “virtuous cycle,” the BTCC CEO also mentioned on social media — consisting of adoption and hence improved price performance — a number of macro factors needed to line up for Bitcoin to have its shot. Specifically, emerging markets should rally for BTC/USD to do the same, as Bitcoin’s 2017 all-time highs and subsequent cool-off coincided with similar behavior on the MSCI Emerging Markets Index versus the S&P 500.
The links between the two, he told CNBC, were hedge funds and wealth effect.
“Hedge funds typically rent emerging market stocks, so they’re risk-on, risk-off… When they’re risk-off, Bitcoin also suffers because they’re risk-off,” he explained.
…If you’re living in an emerging market and you see your stock market fall hugely, that means you’ve got a lot less money to buy Bitcoin, so that affects the network effect.
Going forward, Lee stuck with his end-of-year forecast for BTC/USD, agreeing it would hit $20,000 in 2018.
What do you think about Bobby Lee and Tom Lee’s latest predictions? Let us know in the comments below!
Images courtesy of Twitter, CNBC.
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Written by Wilma Woo @ https://bitcoinist.com/bitcoin-60k-when-not-if-bobby-lee/ August 25, 2018 Wilma Woo