Fundstrat Lead Analyst Thomas Lee shared his worst nightmare on Twitter and it concerned the U.S. President inserting a ban on Bitcoin.
Is Libra Dragging Bitcoin Down?
Because the US Congress and Senate hearings on Fb’s Libra cryptocurrency wrapped up, members of the Trump administration shifted their gaze onto Bitcoin and cryptocurrency as an entire. Throughout each hearings quite a few lawmakers brazenly aired their opinion that Libra ought to by no means be allowed to launch. Much more regarding, on Thursday US Treasury Secretary Steven Mnuchin made media waves when he informed CNBC Squawk Field that the U.S. authorities intends to implement “very, very, strong” rules on cryptocurrencies to make sure they don’t change into “Swiss-numbered bank accounts”.
For cryptocurrency buyers, these mutterings generated combined feelings and a few are fearful that the federal government generated FUD might put a everlasting dent in what many are deciphering as the beginning of a bull market.
Lee’s Worst Nightmare
Fundstrat head analyst Thomas Lee seems to share in these fears and over the previous three days, Lee posted tweets outlining his worry that Bitcoin’s 5 minutes of fame might expose it to the ire of President Trump. In line with Lee, Bitcoin value motion is more likely to stay “choppy” till the media and legislative focus shift on to different issues.
Lee believes that the present Bitcoin protection is popping into “too much of a good thing” and he suggested that extra Bitcoin useful chatter surrounding Brexit, the China commerce warfare, and European financial institution points must make information headlines. On July 13, Lee tweeted a screenshot a piece of the official U.S. ban on the Venezuelan Petro and he positioned further emphasis on the next part:
any digital coin, or digital token, what was issued by, for, on behalf of the Authorities of Venezuela on or after January 9, 2018, are prohibited as of the efficient of this order.
In line with Lee, whereas extremely unlikely, the President might simply signal an govt order to ban Bitcoin and cryptocurrency transactions in america similar to he did for Venezuela. With out offering a lot rationalization, Lee concluded that such a drastic transfer would most likely end in a Bitcoin fork.
Bitcoin Shakes off the FUD
Regardless of these worries, Lee remains to be assured that now’s the time to be invested in Bitcoin and he ends his tweet with #BTFD and #cryptowinter over. Apparently, in the course of the hearings Bitcoin slowly dropped to $9,100 however within the early buying and selling hours on Thursday the digital asset managed a $1,000 upside transfer in slightly over 30 minutes. On the time of writing, Bitcoin trades barely above $10,600 and merchants are hopeful that the cryptocurrency can reenter the $11,200 to $11,500 vary over the following 24-hours.
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Photos through Shutterstock, Twitter @SquawkCNBC
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