Fundstrat Global Advisors co-founder and CEO Tom Lee said the decision by the Federal Reserve to cut interest rates in the US is a plus for Bitcoin (BTC). Speaking to Fox Business on July 31, Lee explained how the decision will positively influence the liquidity of the top-ranking cryptocurrency. His comment reads:
“Bitcoin’s becoming increasingly a macrohedge for investors against things that could go wrong. Rate cuts are adding liquidity. Liquidity is pushing money into all these risk assets and also hedges, which is helping Bitcoin.”
Bitcoin to hit its 2017 all-time high imminently
Lee also made general comments about the price of Bitcoin. He said BTC will likely end the year explosively higher possibly at $20,000.
“We don’t have a target for Bitcoin, but the prior high was $20,000. I think there’s a good possibility that Bitcoin reattains that high this year,” he remarked.
Lee also gave his two cents on recent observations by Federal Reserve Chairman Jerome Powell about Facebook’s proposal to create its own cryptocurrency. Powell told lawmakers at a House Financial Services Committee hearing in Washington that “Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability.” However, Lee believes Libra is totally different from Bitcoin and Powell’s comments have nothing to do with Bitcoin.
“Libra is quite different in its architecture from Bitcoin, so I think that some of his comments are fair about Libra, but they don’t actually apply to Bitcoin.”
Best Financial hedge
Similar to Lee’s remarks, Silicon Valley Venture capitalist Chamath Palihapitiya said Bitcoin is the best hedge fund against the traditional financial infrastructure. He made his remarks during an exclusive interview with CNBC’s Squawk Box on the 9th of July.
“It is the single best hedge against the traditional financial infrastructure. Whether you support fiscal and monetary policy or not, it doesn’t matter: this is the shmuck insurance under your mattress.”