Fundstrat’s Tom Lee Points Out ‘Correlation’ Between BTC And Emerging Markets Is Sign Of Upcoming Trend Reversal
Tom Lee, (BTC) analyst has guaranteed that the cryptocurrency “could end the year explosively higher,” referring to a connection between it and developing markets. Lee has introduced his new prediction in a meeting during CNBC’s “Trading Nation” show August 25.
The Head of Research at Fundstrat Global Advisors has said that he “still think[s] it’s possible” that Bitcoin’s price could flood to as high as $25,000 this year. Lee has constructed this suspicion based on the connection between the price of BTC and BlackRock’s iShares MSCI Emerging Markets trade exchanged fund (ETF), which tracks huge and moderate-sized organizations in developing markets.
The “important correlation,” as indicated by Lee, lies in the way that the two markets are running next to each other, with both having “really essentially peaked” in mid-2018, and “both [having been] in a downward trend” from that point on.
As indicated by Lee, late trading activity demonstrates that speculative stock investments have stopped getting tied up with stores attached to developing markets because of the risks of market sell-off, which, thus, prompts reduce buys of Bitcoin.
As Lee thinks, an adjustment in the direction in developing markets would flag a comparative change in Bitcoin’s pattern:
“Until emerging markets begin to turn, I think in some ways that correlation is going to hold and tell us what sort of the risk on mentality is those buyers aren’t buying bitcoin.”
In the meeting, Lee brought up that the “tide is changing” for both Bitcoin and developing markets, particularly if the U.S. Central bank backs off its interest rate hikes.
Toward the beginning of July, Lee voiced his opinion that Bitcoin could reach anyplace between $22,000 to $25,000 before the end of 2018.
Recently, Tom Lee said that Bitcoin can’t be viewed as “broken” for whatever length of time that it keeps the present levels of price and unpredictability. In those days, he referred to the numbers demonstrated by Fundstrat’s Bitcoin Misery Index (BMI), a device which estimates how “miserable” Bitcoin investors can be, depending on the cryptocurrency’s price and its instability.
