While some analysts are already paining doom-laden scenarios for the global economy, Fundstrat’s Tom Lee doesn’t necessarily believe that a full-fledged currency war between the US and China is going to happen.
However, the Bitcoin bull still stands by his earlier prediction that the top cryptocurrency by market capitalization is going on a moon mission this year.
A source of diversification
During his recent appearance on CNBC’s Fast Money, he pointed out that Bitcoin no longer moves in tandem with the US dollar. Just like gold, it is inversely correlated to the global equity markets, which makes it a viable hedge asset.
So I think Bitcoin is proving itself this year to be a hedge against global risks. I think that makes an authentic institutional source of diversification, says Lee.
As reported by U.Today, Bitcoin’s most recent price surge came on the heels of the US imposing a new batch of tariffs on $300 bln worth of Chinese goods.
Apart from the hedge asset narrative, Lee attributed the end of the prolonging crypto winter to the current Bitcoin rally. There is a lot of technological development happening in the crypto space.
The prescient bull also claims that there are more fiat-to-crypto on-ramps in development, which is also fueling the rally.
Hence, Lee stands by his earlier prediction that Bitcoin will hit a brand-new high this year.