Tom Lee, the co-founder of Fundstrat Global Advisors, claims that the recent rate cuts the US Federal Reserve did on interest have been advantageous for Bitcoin (BTC).
Tom Lee’s Thoughts
In a recent Fox Business interview, Lee shared his two-cents on how the interest rate cuts had a positive effect on BTC investment. He said that investors are starting to look at Bitcoin as a macrohedge for what could go negatively while rate cuts added liquidity. This liquidity is funneling money into hedges and risk assets, which is proving beneficial for Bitcoin.
Lee also made several comments about Bitcoin, which had earlier pushed above the $10,000 mark. While he admitted they don’t have a target for BTC, he also pointed out that the coin had previously hit a high of $20,000. This has led him to believe that there’s a possibility the digital coin will reach it again this year.
Concerns About Libra
The Fundstrat creator also touched on Jerome Powell’s concerns about Libra, the stablecoin Facebook is developing. The chairman of the Federal Reserve said before the recent House Financial Services Committee hearing that Libra raises concerns about consumer protection, financial stability, money laundering, and privacy.
However, Lee believes Powell’s concerns aren’t applicable to BTC since the two have different architecture. While he acknowledges that some of Powell’s comments about Libra are fair, they don’t really fit Bitcoin.
Lee isn’t the only thinking of Bitcoin in terms of macrohedge investment. Chamath Palihapitiya, the CEO of VC company Social Capital, recently claimed that BTC is the best hedge against the current conventional financial system.