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Tom Lee of Fundstrat states "Next Leading Indicator" for a breakout of Bitcoin August 25, 2018 Bitcoin [ad_1] Source link Tags Bitcoin Breakout Fundstrat Indicatorquot leading Lee quotNext States Tom Related Articles Bitcoin Forecast: can bitcoins be worth more than $ 100k in 2019? January 14, 2019 Crypto Tracking App Blockfolio has staff January 14, 2019 The diplomas are now issued via Blockchain with the University of Bahrain January 14, 2019
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<p> Fundstrat's Tom Strass claims to have found the next major indicator for a bitcoin breakout. In an interview with CNBC's Melissa Lee on Fast Money, Tom Lee explained a signal that could indicate if it was imminent a bitcoin breakout. </p>
<p> Tom has a chart that might prefigure the next bitcoin breakout. </p>
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<p> "We think mining and the fundamental factors like the network effect are actually the value of bitcoins, but the Macro factors have an effect on the value of the network. "</p>
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<p> The Tom Lee chart shows two lines A row is the MSCI index of emerging markets compared to the S & P 500. The other line is the price del bitcoin. </p>
<p> The first line shows the value of emerging markets compared to the value of the S & P 500, which keeps track of to the 500 largest United States companies. </p>
<p> The two lines are tracing each other in a surprising way Since the price of bitcoin has risen in 2017, the MSCI index of emerging markets compared to the S & P 500 has also grown. Since the price of bitcoin fell during the first 8 months of 2018, we have seen similar correlations. </p>
<blockquote>
<p> "Could you ask yourself what the link is? Why do we think they are connected? Well, there are two factors: The first is hedge fund Hedge funds typically lease emerging market stocks." </p>
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<p> Tom explains that hedge funds fund "lease" emerging market securities during the "risk on" and "risk off" cycles. </p>
<p> When hedge funds are at risk, they "do not buy stocks from emerging markets." During periods of risk-free, even the price of bitcoin is affected by the fact that hedge funds are not exposed to risk during this period. [19659003] This leads to another effect: when hedge funds stop buying emerging market stocks, they cause the value of emerging markets to fall in. People in emerging markets have less money to buy bitcoins. </p>
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<p> network effect because it is not possible to buy bitcoins. "</p>
</blockquote>
<p> In other words, when institutional investors invest in emerging markets, it causes the price of bitcoins to rise and when institutions stop investing in emerging markets, they cause the price to fall. bitcoin: We saw this happen in 2017, when hedge funds were in a "risk on" cycle and invested in emerging markets, in 2018, when hedge funds reduced In the emerging markets, compared to the S & P 500, we have seen the decline in bitcoin prices. </p>
<h2> When the next rise in prices of Bitcoin will occur </h2>
<p> Tom Lee's theory is based on the idea that the price of bitcoin is driven by institutional investors such as hedge funds and emerging markets. </p>
<p> "This implies that the largest percentage of bitcoin trading and bitcoin buying comes from hedge funds as institutions and even emerging markets," explains CNBC's Melissa Lee while interviewing Tom Lee. "Do the numbers confirm this?" </p>
<blockquote>
<p> "I think that trade has moved in 2018," replies Tom Lee. "I think there are many more exchanges in the United States at the moment, and I think that on the edge, trade like BitMEX has attracted macro-hedge funds, so I think hedge funds will play a role until we have other ramps, there's an incremental demand for crypto. "</p>
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<p> Yes, hedge funds are investing in bitcoins in 2018. Many of them are participating in bitcoin markets on regulated exchanges such as CBOE. </p>
<p> If one must believe in the theory of Tom Lee, then the next rise in bitcoin prices will occur when hedge funds enter a "risk on" cycle. The best way to anticipate that "risk on" cycle is to look at hedge fund investments in emerging markets. </p>
<p> While hedge funds invest in emerging markets, the price of bitcoins increases. If you believe in Tom Lee, then you may want to pay close attention to the MSCI emerging markets index compared to the S & P 500, which shows relative investment in emerging markets. </p>
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