Bitcoin recorded 5 consecutive green monthly candles, which has had some investors believe that the bull rally has begun, as the same was observed during the rally of 2017. Bitcoin hit a ceiling on June 26 and has been on a correction since then. However, it has resumed the rally to break through this point and is now on its way to its all-time high, which is only 33% away.
Fundstrat’s Thomas Lee explained how Bitcoin and other digital currencies from FAANG companies are here to stay in a CNBC power lunch session, while adding the fact that Bitcoin’s macro-view has turned positive due to the Fed’s interest rates and the trade war between the United States and China. Lee said,
“There’s a macro argument to own some Bitcoin; if you owned 2% Bitcoin this year it would have added 400 basis points to your performance, I mean that’s Caviar to hedge funds.”
Lee added that Bitcoin was a “macro story” and explained,
“I think people are responding to the idea that if you have a little insurance it is great and the fact that Facebook and likely other FAANG companies are going to create their own digital currencies, is really validating the idea that digital money is here to stay.”
Bitcoin was created as an alternative to fiat and to escape the clutches of a third party and regulators. Although the same has not been achieved completely, Bitcoin has turned into a store of value through its journey. Retailers and institutions have been using it as a hedge against macro-political and financial events.
Additionally, Lee said that new highs were “imminent” and that,
“So many positive factors supporting higher $BTC and macro factors, #MMT and global central bank easing is a tailwind.
If past instances of Level 10 FOMO (3% of price history), #bitcoin easily surpasses $20k all-time. #BTD”
A Twitter user, @1evaluator, commented,
“All guess work ,these so called e perts ,change their Twitter opinions as bitcoin moves up or down ,none have a clue,just dollar cost average if you believe in bitcoin and forget about it”
Another Twitter user, @detran, added,
“It’s a way to get around USA world dominance and leverage over global finance and its application ie sanctions.”