Fundstrat’s Tom Lee, a Bitcoin bull, believes the coin will likely end the year higher, possibly at $20,000.
Lee added that new markets such as the iShares MSCI Emerging Markets Index ETF will be driving forces to the growth of the cryptocurrency sector.
Lee compared the current coin moves to the correlation of ETFs and assets in 2017 and now saying that the same trend is likely to take place leading to the increase in Bitcoin price. He added that currently the current conflict the United States, China, Iran, and Turkey is likely to weaken the value of the dollar which could lead to more interest in the coin.
Countries are already proposing a worldwide financial system which is not controlled by the US. Germany has already made such a proposal because of the conflicts between the US and many countries.
Devaluation of the USD and Bitcoin
According to German foreign Minister Heiko Maas: “It’s very important for European nations to establish new payment methods which do not depend on the US. Our countries should create a monetary fund in addition to building an independent Swift system.”
With German being a powerful nation if it carries out its agenda of an independent financial system then the value of the USD will come down. The falling of the value of the USD would lead to the rise in the price of Bitcoin since many people would opt for digital currencies.
The coin has not performed well since the start of the year.
In fact, the digital coin hit its all-time high in December 2017 when its price almost hit the $20,000 mark. Since then, it has lost more than half of its price. At the moment the coin is trading at $7,311.
Tom Lee expects the price of Bitcoin to have a very similar rally to last year’s run, therefore, hitting the $20,000 mark.
The cryptocurrency investor concluded that if countries team up to devalue the USD then the price of Bitcoin is likely to explode. With Bitcoin operating independently many investors are likely to seek refuge in it. This is the best time for Bitcoin to move towards mainstream.
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