When everything is bullish, nothing is.
Bitcoin has been on the tip of just about everybody’s tongue recently. From the CEO of Goldman Sachs to the President of the United States of America, the price of Bitcoin might not be skyrocketing as one would’ve hoped, but curiosity is certainly peaking.
The main harbinger of this ‘Bitcoin 101’ craze is undoubtedly Libra, the cryptocurrency project by Facebook that seems to be hitting roadblocks after roadblocks. Unveiled in June, Libra has positioned the regulatory spotlight firmly on Bitcoin and the cryptocurrency market, with the price responding.
Libra was seen as a potential catalyst for the cryptocurrency industry, owing to Facebook’s giant customer base. In fact, many Bitcoin-enthusiasts saw it as a bridge from the centralized to the decentralized.
However, as more and more eyes drew towards Libra, curiosity turned to anxiety, and then to panic. What followed was a series of vocal attacks on not just Libra, but the entire cryptocurrency market, by the Federal Reserve Chair, POTUS and the Treasury Secretary.
Bitcoin dropped over $1,500 in price following Jerome Powell’s comments before the Congressional Committee, and the wait for Steve Mnuchin, the Treasury Secretary’s press briefing shaved another $1,000. On the other hand, POTUS’s tweets resulted in no significant price movement.
Now, the price of Bitcoin stands on the cusp of either falling down to a four-figure mark or, another surge towards its ATH. With the regulatory and administrative ‘hype’ around Bitcoin soaring, what will be the effect on the price charts?
Thomas Lee decided to take a stab at this question. The Bitcoin bull [emphasis on bull] predicted a ‘Trump Pump,’ following Donald Trump’s comments about Bitcoin. Fundstrat’s Head of Research stated that Bitcoin could rise as high as $40,000 by the close of 2019, a 280x price increase in the next 5 months. Hence, the emphasis on ‘bull.’
In response to Morgan Creek Digital’s Jason Williams who charted Bitcoin with respect to the “Trump Pump,” Lee called the market correction a “healthy” one.
Bitcoin search traffic has also been on a decline, with two distinct peaks at the close of May and June, with deep valleys in between. Interestingly, despite mainstream media coverage during hearings and advertisement on Trump’s Twitter feed, the search queries didn’t light up, while the price took a hit.
Lee took this as a “good sign.” According to his calculated estimates, the price rise is devoid of any “massive hype.” It could be presumed that the rise is not a result of fledgling investors chancing at the cryptocurrency industry and points to a more methodical move within the space.
The Fundstrat executive stated,
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