Bitcoin [BTC]: US-China tensions fueled the cryptocurrency’s growth, says Tom Lee
Tom Lee, Co-founder of Fundstrat, spoke about Bitcoin’s [BTC] recent hike over $8000, during an interview with CNBC Fast Money. Tom Lee pointed out the possible reasons that were acting as catalysts for this surge and also spoke about the future position of cryptocurrencies.
Lee stated that the cryptocurrency was seeing a “steady rise” over the past few months, adding that it started to look “more parabolic.” He further stated that there were several events that occurred recently, thereby fueling Bitcoin’s upward move. One among them was the Consensus conference taking place in New York. On this, the Co-founder stated that the event brought together the entire cryptoverse in a “much more higher quality form,” while also highlighting the fact that scams and ICOs have seen a significant decrease.
This was followed by Lee stating that one of the “notable” catalysts was the “tension between the US and China.” He stated that “it’s really sort of sparked this potential risk of some sort of systematic meltdown and crypto is correlated.”
Further, Tom Lee spoke about what would happen next with Bitcoin. He stated that crypto-winter was practically over and that the largest-cryptocurrency was “technically above its 200 days.” He also stated that there have been several positive developments, including announcements made during the Consensus conference, like Bakkt launch and merchants accepting the coins for payments.
Lee also stated that the halving, which is set to occur next year, was also one of the reasons contributing to the rise. He pointed out that this phenomenon had occurred previously, where Bitcoin’s price starts to rally about 12 months before the halving season. He went on to state,
” […] then of course in Asia, there’s been a couple of events that has affected the supply because there was a hack on an exchange in Asia and for the past week, there have been restrictions on either withdrawing or adding funds to anyone on the exchange. That’s again affected supply, this supply and demand are obviously affecting Bitcoin […]. “
Additionally, he stated that Bitcoin closing the gap to the $10,000 level was driving positive sentiments among investors. Additionally, Lee was asked about his opinion on Bitcoin playing the role of a major safe haven in the future, if central banks had a possible meltdown. He stated,
“[…] I think its going to be an asset that will look attractive in the event of a tail risk. A tail risk event of either the loss of state and central banks, that’s the original reason cryptocurrencies were developed. So, you know and that sort of spectrum deep risk, I think Bitcoin is the epic digital gold […]”