60 trillion dollars are to flow from bonds to crypto: crypto-bull Tom Lee in the next 10 years
60 trillion dollars are to flow from bonds to crypto: crypto-bull Tom Lee in the next 10 years
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- Tom Lee says that if the interest rates rise against a 30-year trend, investors will try to invest in risky facilities because they lose money if they invest in government bonds.
- crypto will be one of the biggest beneficiaries because $ 60 trillion of net assets of $ 142 trillion are looking for a new home, but there is a great risk of climbing.
Bitcoin put a comeback last day to add 4 percent and acted at $ 43,600 when the entire cryptom market saw green. And according to an analyst, the price could head to the $ 200,000 mark in the next few years because it could benefit from the rate increase. In an interview, Tom Lee said that he would expect American households to look for $ 60 trillion for riskier investment values such as Bitcoin because government bonds lose their attractiveness through interest rate increases.
The BTC trading volume has risen by 38 percent to $ 22.8 billion after a lack of trading session on Valentine's Day. The market capitalization is now $ 826.6 billion and is therefore just below Tesla and almost twice as high as the market capitalization of America's largest bank, JPMorgan Chase.
(diagram, which shows the price, the relative volatility and the simple sliding average for BTC, with the kind permission of tradingview.com ).
Although Bitcoin is 36 percent below his all -time high, Bitcoin still has a brilliant future in front of him, believes Lee. The analyst, founder and research manager of Fundsstrat Global Advisors, believes that the US Federal Reserve will hold the key to the future of BTC, whereby its decision to increase interest rates has been the most influential of the past few years for BTC.
In conversation with cnbc Lee then:
The interest rates seem to be able to reverse almost 30 years of the decline. This means that you are guaranteed to lose money with the possession of bonds in the next 10 years ... That is almost $ 60 trillion of $ 142 trillion [of and see. Household net Worth].
Lee: Bitcoin is still the crypto that you should keep in the eye, but it harbors a big one Risk
Lee has never shy away from making brave Bitcoin prize forecasts. While some have not prevailed, one he made five years ago was held when the crypto only gained mainstream attraction. At that time he predicted that BTC would act between $ 15,000 and $ 50,000 in 2022.
Today the crypto is near the upper limit of Lee's prediction.
About the flow of money from bonds to Krypto told Lee to CNBC:
The question we ask ourselves is: "Where will the $ 60 trillion flow to achieve return?" The obvious thing is that it rotates in shares like Faang, but I think what is more likely is a lot of speculative capital from stocks ... It will really attribute its roots to rotation from bonds and finally flow into crypto.
Alternative coins lately. Or altcoins, have taken a large part of the attractiveness of BTC on the market. Even institutional investors continued to flow in Ethereum and other newer old coins such as Cardano, Solana and Terra.
Read more: Institutional investors flee Bitcoin for old coins, as the report reveals
However,BTC is still the crypto that should be kept in mind, emphasized Lee. Investors want the certainty that only Bitcoin offers, and the analyst does not see that this will change for a long time.
However,Bitcoin has a big risk. According to Lee, it is okay to experiment and even fail with NFTs, old coins, defi, the meta -verse and more, but it is crucial to protect Bitcoin's security. If this security is ever an option, this would not only be devastating for Bitcoin, but also for the entire market.
Will Bitcoin reach $ 100,000 this year? Lee says that it is possible but predicting Bitcoin's price at this time is a child's play.
If someone doesn't really have a crystal ball, it is very difficult to be precise in crypto. Drawdowns of 40 % are really common and Bitcoin makes most of his profits in 10 days in every single year. It is difficult to be too accurate with crypto. They are wide alleys.
Source: Crypto-news-flash.com