Donald Trump recently came out swinging against cryptocurrencies in general, and Bitcoin and Facebook’s Libra in particular. According to Tom Lee, however, Trump’s comments on Bitcoin could play a part in raising the Bitcoin price to $40,000 this year.
Lee: Trump’s crypto bash could lead to new highs
Tom Lee is the Head of Research at Fundstrat Global Advisors. What’s more, Lee is sometimes called a “Bitcoin permabull”, due to his exceptionally bullish outlook on the crypto. Nonetheless, Lee shrugged off Trump’s recent negative crypto comments.
This news came in an interview on Yahoo Finance’s YFi PM Friday. In it, Lee said that Trump’s comments could actually be beneficial for Bitcoin.
“On balance, it’s a positive because cryptocurrencies and bitcoin really are in the main stage now, [as] Congress, the Fed, the president [are] weighing in.”
Furthermore, Lee made a reference to the recent comments by the Federal Reserve’s Chairman, Jerome Powell. According to Powell, Facebook would need to tread lightly when it comes to its upcoming Libra cryptocurrency. Specifically, Powell highlighted that Facebook would have to follow regulations closely.
“It [Trump and Powell’s comments] is going to force everybody who is not involved — and remember a very small percentage actually cares about crypto and bitcoin — it’s going to force the other 98% of the world to think about what it means.”
$40,000 Bitcoin price in 2019?
Brian Armstrong, the CEO of Coinbase, recently said that Trump’s comments were an “achievement unlock”. This echoes the sentiment that Trump has now increasingly brought crypto discussions into the mainstream. As such, Lee is far from alone in seeing something positive with Trump’s comments.
However, Lee goes further than that. According to a recent report by Yahoo, Lee argues that FOMO could drive the price of Bitcoin far higher. Specifically, he said it could end up “anywhere from $20,000 to $40,000 by the fourth quarter” of this year. This prediction comes specifically after Trump issued his harsh tweets regarding crypto, which could have increased public interest in Bitcoin.
Also, Lee pointed towards that Bitcoin is currently trading at a price level which it has only occupied for 3% of “its historic days”. As such, Lee indicated that further gains could soon follow:
“If you go back to every milestone that that was achieved, Bitcoin subsequently rallied somewhere between 200% – 400% within the next four months. So I think if that’s playing out this time that means Bitcoin could be $20,000 to $40,000 Sometime in the fourth quarter.“
Image Source: Business Insider
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.