During a recent appearance on CNBC's Squawk Box, Tom Lee of Fundstrat stated that Bitcoin, the leading cryptocurrency, is gradually replacing gold.
Bitcoin as Digital Gold
"I think Bitcoin is digital gold. I think it's replacing gold over time," Lee said. According to him, the rising gold prices show that there is still a lot of fear in the market, and the yellow metal could be potentially viewed as a measure of bearish sentiment.
Functions of Bitcoin in the Market
Lee believes that Bitcoin has two functions: it acts as a risk-on asset and provides protection against systematic risk. The analyst thinks that in the event of dollar debasement, investors would want to own a lot of Bitcoin or gold.
Forecasts and Expectations
Following the global market crash earlier this year, markets showed a lot of resilience. "I mean, the fact that we snapped back so sharply is showing you how strong this market is," Lee added. He is convinced that the probability of a 'soft landing' is increasing and that the anticipated Fed rate cut in September could be a major bullish catalyst for Bitcoin.
Tom Lee continues to forecast substantial bitcoin price gains, predicting a rise to $150,000 this year despite current market conditions.
Comments