Tom Lee: Fed rate cut will help bitcoin price to reach $ 20 thousand by the end of the year

Tom Lee, co-founder of Fundstrat Global Advisors, is not abandoning his own optimistic forecasts for Bitcoin prices. He is convinced that the US Federal Reserve (Fed) will help the first cryptocurrency to reach the $ 20,000 mark by the end of 2019. This analyst said in an interview with FOX Business .

So, Lee is confident that Bitcoin's achievement of historic highs will contribute to the reduction of the Fed discount rate.

“Bitcoin is strengthening its position as a tool for macro hedging risks. Lower rates increase liquidity, which leads to the fact that the money is sent to all risky assets, as well as hedging. In turn, this has a positive effect on Bitcoin, ” said the co-founder of Fundstrat.

On July 31, the Fed for the first time in the last ten years lowered the base interest rate by 25 points from 2.25–2.5% to 2–2.25%.

It is worth noting that at a hearing at the Senate Banking Committee of the United States, Fed Chairman Jerome Powell agreed that the global cryptocurrency could eliminate the need for reserve currencies, but noted that so far “almost no one uses bitcoin as a means of payment” and called it “speculative accumulation. "

Recall that in June, Tom Lee announced that after overcoming the level of $ 10,000, the Bitcoin-driven FOMO price would reach $ 40,000 within a few months.

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