November 27, 2022

Why should Bitcoin rate grow in the long run?

Why should Bitcoin rate grow in the long run?

Despite the fact that during the current year, the first cryptocurrency grew from $ 4,000 to $ 14,000 (an increase of 360%), and after down nearly 50%, industry leading analystand the creator of Fundstrat is still positive about the first cryptocurrency. In an interview with CNBC, he talked about the reasons why Bitcoin should enter an uptrend by the end of 2020.

While the discussion focused mainly on stocks, the CNBC host touched on the cryptocurrency market crash.

In turn, the cryptanalyst expressed the opinionthat current market weakness may be due to increased regulatory control and uncertainty, especially in regions such as the United States. At the same time, the fact of the lack of mass adoption of cryptocurrencies probably also contributed to the decline.

Lee noted that despite a 50% decline in the value of Bitcoin, this will not affect the long-term prospects of the first cryptocurrency.

“There are many reasons for optimism regarding cryptocurrencies next year”- continued the head of Fundstrat.

He explained that the jump in American pricesstocks, which are currently at record highs, create conditions for risk-insensitive investors to invest in Bitcoin and other markets, which can be considered “risky”. Indeed, the analyst noted that the best years of Bitcoin's work correlate with the S&P 500 and others, which implies the risk appetite of investors.

Lee added that halving will help Bitcoin gain new momentum.