A few days ago, the president of the United States, Donald Trump, commented on Twitter in a negative way about Bitcoin (BTC) and Libra, the digital currency that is expected to be released by Facebook. Although there have been different opinions about Trump’s comments, Thomas Lee, the co-founder of Fundstrat Global, considers that the most popular virtual currency is going to be benefiting from his comments.
Thomas Lee Believes Trump’s Comments About BTC Are Positive
Mr. Trump, the president of the United States, wrote on Twitter a few days ago that he is not a fan of Bitcoin and other cryptocurrencies. He explained that they are not money and that their value is highly volatile and “based on thin air.” He has also linked virtual currencies with criminals and how these digital assets can be used to trade drugs and perform other illegal activities.
Furthermore, Trump has also criticized Libra saying that Facebook should follow banking rules if it wants to offer banking services.
Thomas Lee, a recognized figure in the cryptocurrency market, mentioned that Trump’s tweets will have an overall positive impact on the market. Lee showed that there is 0.1% of the world already involved in virtual currencies. However, there is a 99% that don’t care about Bitcoin and digital assets.
This is why Donald Trump talking about this cryptocurrency would generate awareness in the 99% that didn’t know or hear about Bitcoin. If just 1% of these individuals decide to purchase Bitcoin, the market could double its current size.
On balance, it’s a positive.
– there are at most 1% of the world who really follow crypto (more like 0.1%) so 99% basically don’t care
– DJT stating he is not a fan makes the other 99% more aware.
– if 1% of those gets positive, just 2x market size. https://t.co/dz9QY3mjWP
— Thomas Lee (@fundstrat) July 13, 2019
Lee believes that Bitcoin is going to be reaching $40,000 by the end of this year. That means that the most popular digital asset would have to grow over 275% from its current price in order to reach that value in the future. Lee said that Bitcoin is trading in a level that has only been seen by the market during 3% of its history. Nonetheless, he considered that $13,400 is working as a strong resistance level for Bitcoin buyers. With the help of institutional investors, it might be possible for Bitcoin to surpass that level once again.
At the time of writing this article, Bitcoin is traded around $10,650 and it has a market capitalization of $189 billion. In the last 24 hours, the virtual currency fell 6.71%.
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