The cryptocurrency market has very much struggled this year. It has failed to reach anything near the peak price of last year. However, Tom Lee has come out to state that he still believes that bitcoin will hit $20,000 this year.
He explained that although bitcoin has not been able to follow the market trends of traditional assets like gold, it has however shown similar patterns with emerging markets. He added that emerging market ETFs like iShares ETF have similar price patterns with bitcoin.
Lee said that analysis of the two markets (bitcoin and iShares) showed that they both peaked early this year and they have both experienced a continuous fall in prices through the year. Therefore, the price rejuvenation being experiencing in emerging markets and assets are likely to rub off on bitcoin.
In addition, he believes that the dispute between the US and major industrial countries could adversely affect the value of the US dollar, hence, bitcoin’s price will experience a massive jolt.
Germany was reported to have officially released plans for implementing a global financial framework that would allow the country to bypass the US dollar when trading. If this happens, the value of the US dollar will fall.
Bitcoin price is 64% down from its peak price of $20,000 last December. The persisting bear market has been relating to various factors. Some analysts have revealed that the emerging market is correcting itself, while others have blamed the mass sale of bitcoin by long-term bitcoin investors to inexperienced and new investors.
However many are optimistic about the future of the emerging market. Recently, venture capitalist Anthony Pompilano predicted that the price of bitcoin will eventually hit $50,000 in the future. He, however, stated that his analysis has shown that the price of bitcoin will fall to $3,000 this year.
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