A relatively unexpected event between Bitcoin and emerging markets could happen in an explosive way, according toTom Lee from Fundstrat in a recent statement.
“End the year in an explosive way”
After having reached their historic highs at the beginning of the year, the wind that has brought digital currencies and emerging technologies seems to be turning on the dark side. Indeed, the industry has been on a downtrend for some time now according to Lee in his interview with CNBC’s Trading Nation. Nevertheless, he believes that both technologies should recover very quickly towards the end of this year.
“Until emerging markets flourish, I think in a way, this correlation that binds it to virtual currencies is inevitable. Some buyers may no longer acquire Bitcoin. “
Hedgefunds have suspended the purchase of funds associated with the emerging industry and the risks inherent in trading are still quite high. As a result, this has naturally led to the reduction of investments in the BTC.
Lee maintains price forecast for BTC
The price of Bitcoin (BTC) could “still reach $ 25,000 this year.” Lee based this assumption on the relationship between the value of the first cryptocurrency in terms of market capitalization and the iShares MSCI Emerging Markets ETF. from BlackRock . This exchange-traded fund follows large and medium-sized emerging market companies.
The similarities between Bitcoin and the iShares MSCI Emerging Markets ETF are explained by the fact that both markets “really reached their peak” at the beginning of the year, “both of which have been in a downward trend” currently.
“The trend is changing,” Lee said in his interview. Especially since the US Federal Reserve is considering lowering its interest rates.
What do you think about the assumption that the price of Bitcoin will increase thanks to the correlation between cryptocurrency and emerging markets? Let us know in the comments section below.