It is no longer news that the United States of America has cut down on its interest rates for the first time in over ten years. Thomas Lee believes it is for the good of Bitcoin and the blockchain as a whole. Recently, in an interview with Fox Business, He said that the interest rate cut by the US Federal Reserve (FED) is good for bitcoin (BTC). He also predicted $ 20,000 for BTC by the end of this year.
Read more: Bitcoin Hits a staggering 85 percent circulation.
Thomas Lee, who is the co-founder of Fundstrat Global Advisors, believes that the recent interest rate cut by the US Federal Reserve (FED) is good for bitcoin (BTC). In an interview with Fox Business on July 31, he noted that bitcoin is becoming a macro hedge for investors.
The FED lowered interest rates on Wednesday for the first time since the 2008 financial crisis.
Jerome Powell, who is the president of the US Federal Reserve (FED) said that the cut was intended to support the current growth of the economy.
In an interview with Fox Business, Lee voiced out His opinion and suggested that the development could be beneficial for bitcoin investors. According to Him, “Bitcoin is increasingly becoming a macro hedge for investors against things that can go wrong. Interest rate reduction adds more liquidity. Liquidity pushes money to all sorts of risky assets and also to hedges, which helps bitcoin.”
Read More: Samsung S10 phones now supports Bitcoin
During the interview, Lee also talked about Facebook Libra. The announcement of the Cryptocurrency by the social media giants has been confronted with a lot of criticism. According to Lee, Bitcoin users don’t have to worry about the coin. Below are His exact words “Libra is very different in its architecture from Bitcoin, so I think some of his [Jerome Powell] comments are honest about Libra, but they don’t apply to Bitcoin.”
Finally, Lee made a small price forecast for bitcoin. He sounds like an optimist. Below are His exact words “We have no target for Bitcoin, but the earlier high point was $ 20,000; I think there is a good possibility that Bitcoin will rise again this year.”
What is your take on His predictions towards the interest rate cut by the US, let us know through the comment section.
You can also check out our airdrop category for the latest airdrops opportunities.
You can also check our post on Seoul Planned Cryptocurrency.