Donald Trump’s recent attack on the crypto space could push Bitcoin up to $40,000 by year-end, according to Fundstrat Global Advisors’ Head of Research Thomas Lee.
In an interview with Yahoo Finance, he said: “On balance, it’s a positive because cryptocurrencies and Bitcoin really are in the main stage now, with the Congress, the Fed, the President weighing in.”
Lee added: “It’s going to force everybody who is not involved — and 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.”
Bitcoin is now trading at a rarely seen level, he noted. “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 it could be $20,000 to $40,000 sometime in the fourth quarter.”
To get there, it would need to surpass the $13,400 level that has proven to be an issue so far this year. Facebook’s Libra project, meanwhile, has a role to play here in terms of bringing new users onboard, but won’t be as influential as many industry observers have been predicting.
“In a world without Libra, is crypto going to be successful? Absolutely. So I don’t think it changes the long-term outlook for Bitcoin,” Lee concluded.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.