The Fed's interest rate cut is good news for Bitcoin.
Co-founder Tom Lee believes that the Fed's recent interest rate cuts are good news for Bitcoin.
In an interview with Fox Business on July 31, Lee talked about the positive impact of interest rate cuts on Bitcoin investment.
"Bitcoin is increasingly becoming a macro-hedge against things that might go wrong. Interest rate cuts increase liquidity. Liquidity drives money into all these risky assets, while hedging, which helps Bitcoin.
Li Kaifu made several more general comments on Bitcoin, which climbed to more than $10,000 earlier today. In terms of price, Lee Myung-bak believes that by the end of this year, the coin may hit a record high again. He said:
"We don't have a Bitcoin target, but the previous peak was $20,000. I think Bitcoin is likely to hit a new high this year.
Lee also expressed concern about Federal Reserve Chairman Jerome Powell's proposal for Facebook to launch Libra stable coin. In a recent hearing on the House Financial Services Committee, Powell said Libra "has raised serious concerns about privacy, money laundering, consumer protection and financial stability." Lee told Fox that he did not think these concerns would apply to Bitcoin:
"Libra and Bitcoin are very different in structure, so I think some of his comments are fair to Libra, but they don't really apply to Bitcoin."
Bitcoin as a hedge
Similar to Tom Lee's claim that Bitcoin is increasingly becoming a macro hedge, Chamath Palihapitiya, chief executive of social capital, a venture capital firm, recently even called it the single best hedge against the traditional financial system. In an interview with CNBC on July 9, Pelliha Pitia said:
"This is the single best hedge against traditional financial infrastructure. Whether you support fiscal and monetary policy or not, it doesn't matter: it's a little insurance under your mattress."
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