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U.S. President Donald Trump took to Twitter to lash out at digital assets and cryptocurrencies like Bitcoin and Libra last Thursday. He expressed his disinterest in said virtual currencies and asserted that they could “facilitate unlawful behavior, including drug trade and other illegal activity.” However, some in the crypto community believe that this attention could boost Bitcoin’s price to new highs.
Tom Lee, Managing Partner and the Head of Research at Fundstrat Global Advisors, passed similar remarks in an interview with Yahoo! Finance, saying that the attack on cryptocurrencies by President Trump could help Bitcoin’s price rise to as much as $40,000 by the year-end.
“On balance, it’s a positive because cryptocurrencies and bitcoin really are in the main stage now — Congress, the Fed, the president weighing in,” Lee said. He said that the attention drawn to cryptocurrencies in general and Bitcoin in specific is because of President Trump will force all those who have not been involved with cryptocurrencies so far, to start paying attention.
“It’s going to force everybody who is not involved — and remember a very small percentage actually cares about crypto and bitcoin — it’s going to force the other 98% of the world to think about what it means.”
Coinbase CEO Brian Armstrong also cheered the President’s anti-crypto tweets, saying that he had dreamt of a sitting president having to address the rising use of cryptocurrencies.
“Bitcoin Could Be $20,000 to $40,000 Sometime in the Fourth Quarter”
Lee was of the view that with the added focus on Facebook’s cryptocurrency Libra, the momentum gained by cryptocurrencies could carry Bitcoin to an all-time high as investors panic of missing out on the opportunity.
“Bitcoin is now trading at a level that it’s only seen 3% of its historical days. If you go back to every milestone that that was achieved, bitcoin subsequently rallied somewhere between 200% to 400% within the next four months, so I think if that’s playing out this time that means bitcoin could be $20,000 to $40,000 sometime in the fourth quarter.”
Lee also talked about the impact that Facebook’s Libra could or could not have on the overall crypto community. He insisted that Libra would have no impact on the long term success and adoption of cryptocurrencies. “In a world without Libra, is crypto going to be successful? Absolutely. So, I don’t think it changes the long-term outlook for bitcoin,” Lee said.