There are various optimistic predictions that are flooding the cryptosphere thesedays.
Bitcoin is an effective hedge against global economic uncertainty
Head of research at Fundstrat Global Advisors said that Bitcoin had proven this year that it’s an effective hedge against global economic uncertainty.
During a new interview with CNBC’s Fast Money, Tom Lee explained the reasons for which he believes Bitcoin is on its way to new highs and proving itself to be an institutional source of investment diversification.
“For the last couple of years, [Bitcoin] has been correlated to [US] dollars, so weak dollar has been good for [the cryptocurrency] and strong dollar has [led to a] weak Bitcoin. [The digital asset] has been really correlated to risk markets. This year, it’s delinked from the dollar because the dollar has been strong and Bitcoin has been up, which is a real breakage,” Lee said.
He continued and explained that “I think that makes it an authentic institutional source of diversification. I think that’s going to help it propel to new highs.”