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US Fed rate cuts help Bitcoin



Co-founder of Fundstrat Global Advisors Tom Lee believes recent interest rate cuts in the US by the Federal Reserve are a boon to Bitcoin (BTC).

Lee commented on how interest rates positively impacted Bitcoin investment in an interview with Fox Business July 31, saying:

“Bitcoin is increasingly becoming a macro haven for investors against things that can go wrong. Interest rate cuts provide liquidity. Liquidity pushes money into all these risk weights and also hedges, which helps Bitcoin. ”

Lee provided a few more general notes about Bitcoin, which climbed back over the $ 1

0,000 mark earlier today. In terms of price, Lee believes it is likely that the coin will pick up all-time high by the end of the year. He commented:

"We do not have a target for Bitcoin, but the previous high was $ 20,000. I think there is a good chance that Bitcoin will get it so high this year."

Lee also commented briefly on Federal Reserve Chairman Jerome Powell voiced concerns about Facebook's proposed Libra stablecoin, Powell said in a recent hearing for the House Financial Services Committee that Libra "poses serious concerns about privacy, money laundering, consumer protection and financial stability." Lee told Fox he doesn't believe that these concerns apply to Bitcoin: [19659003] "Libra is quite different in its architecture from Bitcoin, so I think some of his comments are fair about Libra, but they don't actually apply to Bitcoin."

Bitcoin as a hedge investment [19659008] Similar to Tom Lee's comments that Bitcoin is increasingly a macro hedge investment, CEO of VC social capital company Chamath Palihapitiya recently went far from calling it the best hedge against the traditional economic system. Palihapitiya said in a CNBC Squawk Box interview on July 9:

"It is the best hedge against traditional economic infrastructure. Whether you support financial and monetary policy or not, it doesn't matter: this is the shmuck insurance under your mattress. "


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