One of the founders of Fundstrat Global Advisors Thomas Lee said that favorable macroeconomic forecasts will provide the possibility of the next cycle of Bitcoin growth.
In an interview with CNBC, Lee denied that investors are buying Bitcoin to hedge macro-risks, viewing the asset as a haven or digital gold. According to him, investors are ready to invest in cryptocurrency when they are optimistic about the development of the economy as a whole, during the growth of industry and traditional markets:
“The growth of Bitcoin has stopped because macroeconomic forecasts are far from the best. Without a global growth trend, the price of bitcoin does not rise. Therefore, I believe that the next major catalyst for growth will be a breakthrough in the stock markets, since only stocks reach record levels, investors want to take a chance with an asset such as bitcoin. ”
He said that Fundstrat recently provided its clients with an analysis showing that over the past decade, 3-4 years with the best S&P 500 indexes have coincided with the best years for bitcoin. Lee noted that cryptocurrency is growing in price when the S&P index shows a growth of at least 15%.
Lee admits the possibility that Bitcoin can be acquired both as a risky asset and as a hedge. He also noted that if the stock markets are able to reach historic highs and central banks maintain monetary support, then liquidity will go to bitcoin.
With this scenario developing, a significant factor will be an interest in increasing volatility, which will serve as an important quality of the attractiveness of investments in cryptocurrency.