What happens when one of the most powerful people roasts cryptos? According to Fundstrat Global Advisors’ Head of Research, Tom Lee, it just may serve as the perfect boost for bitcoin, pushing its price to a new all time high of even as high as $40,000.
Bitcoin has been making quite a few headlines lately owing to its recent price fluctuations. However, recently it was in the news courtesy of the outspoken U.S. President Donald J. Trump, when he showed his disinterest towards the cryptocurrency and its potential.
In his interview with Yahoo Finance, Lee explained the basis of his prediction, suggesting that Trump’s criticism is actually positive for bitcoin and cryptocurrencies because it further brings them in the spotlight with Congress, the Fed and even the president. Considering its recent price hike, the Fundstrat researcher suggested that crypto’s presence in the spotlight, coupled with other technical indicators and FOMO (fear of missing out) could lead to a bull run to $40,000 later this year.
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.
Since its inception, Bitcoin has faced some pretty tough times and strong resistance, especially when it comes to official acceptance. It is no secret that officials across the globe view the cryptocurrency through a skeptical lens. Recently, President of the United States gave his two cents on the expanding world of cryptocurrencies, as he “tweet-shamed” Bitcoin and other cryptocurrencies in a Twitter thread:
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.
But some in the crypto community suggest that Trump might have done more good than harm and that the renewed attention might take the digital currencies to a new high. Tom believes that all the attention they are getting is eventually going to pull people towards cryptos, even the ones who were never involved in the first place. He further emphasized:
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.
The added attention courtesy Trump’s remarks were seen as a win for the crypto community by the CEO of the United States-based cryptocurrency exchange, Coinbase. Brian Armstrong quickly took to Twitter following Mr. President’s remarks, saying that he literally dreamt of the day when a sitting U.S. president would feel the need to address cryptocurrencies. He deemed it as an achievement rather than a misfortune for the crypto ecosystem.
Achievement unlocked! I dreamt about a sitting U.S. president needing to respond to growing cryptocurrency usage years ago. “First they ignore you, then they laugh at you, then they fight you, then you win”. We just made it to step 3 y’all. https://t.co/N3tzUKELaK
— Brian Armstrong (@brian_armstrong) July 12, 2019
The crypto community is rejoicing not particularly over Trump’s negative remarks on cryptocurrenies, in fact they seem to be overshadowed by the fact that Trump had to mention and address cryptocurrencies at all. What Trump did, rather unknowingly, is that he gave cryptocurrencies acknowledgment for its relevance. And the fact that it came from the president of the one of the most prominent countries in the world is just the cherry on top.
Trump’s Twitter thread revealed that U.S. officials within high powers are noticing and probably even studying all the challenges and threats that the cryptocurrency technology poses to the existing financial and technical systems of the country.
He even dragged in Facebook’s forthcoming cryptocurrency, Libra, that has been subject to many questions and speculations ever since the social media giant unveiled its whitepaper on the project. He questioned Libra’s standing and dependability saying:
Similarly, Facebook Libra’s ‘virtual currency’ will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National… and International.
Considering Facebook’s mammoth user base of 2.7 billion worldwide, it has pushed corporate leaders, bankers and, most importantly, government leaders into a corner to think and converse about cryptocurrencies. It is highly likely that is what prompted Trump to address bitcoin, Libra and cryptocurrencies in general, on Twitter.
Rejoice of the crypto community aside, it seems Trump’s remarks did have an impact on bitcoin as it fell sharply earlier today. According to reports, bitcoin dropped about 10% to $10,175. Considering the plunge, it seems that Trump’s remarks about bitcoin and cryptocurrencies shouldn’t be taken too lightly.