Bitcoin price: Cryptocurrency expert says RALLY could indicate THIS for stock markets sponsored by City & Business News Bitcoin price: Cryptocurrency expert says RALLY could indicate THIS for stock markets BITCOIN price climbed to an April high of over $9,700 on Tuesday after a turbulent few months for the cryptocurrency – one bitcoin expert has said the recent surge in value could be “casually connected” to the stock markets. PUBLISHED: 13:47, Wed, Apr 25, 2018 | UPDATED: 13:52, Wed, Apr 25, 2018 0
Bitcoin expert Tom Lee praised financial giant Goldman Sachs’ decision to hire a cryptocurrency trader – insisting it is “a sign” that a major investment bank believes that there is enough “clarity and custody and money to be made” within cryptocurrencies.
Mr Lee, of market advisors Fundstrat, also said stock markets are related to the crypto climate. Speaking on CNBC , he said: “I’m not a huge believer in bitcoin being a sentiment indicator for the stock markets.
“But I can see how they are casually connected.”
He added: “Because if you look at the CTA universe, the commodity trading and trend following money managers, bitcoin to them is simply another instrument that if it is trending higher they are going to be adding leverage and so I think if bitcoin is rallying it is indicative of a risk on rally.
” Getty•CNBC Bitcoin price: Tom Lee said bitcoin could be connected to stock markets They are going to be adding leverage and so I think if bitcoin is rallying it is indicative of a risk on rally Tom Lee
Tom Forester, of Forester Capital Management told the Wall Street Journal that prices of bitcoin indicate shifts in investor sentiment ahead of moves in the stock market. He said: “We do view bitcoin as a sentiment indicator.”
CEO Jeffrey Gundlach believes bitcoin price fluctuates in agreement with moves in the stock market – claiming it is the “poster child of the social mood”.
Doubleline Capital CEO Jeffrey Gundlach said investors need to understand the connection between bitcoin and the social mood as he warned that volatility within the stock markets is not over yet.
Speaking on CNBC, he said: “What investors need to understand is that there is a connection between bitcoin and the basic social mood of what was speculation is now a little bit more cautious.”
The cryptocurrency expert said bitcoin “very clearly” leads the stock markets.
Mr Lee said the interest in bitcoin cash recently has been the result of a “hard fork”, which he explained as a protocol change to the alt-coin.
Bitcoin cash (BCH) was established in August 2017 as a hard fork of bitcoin – the world’s biggest and best-known cryptocurrency.
Created by miners after disagreements within the bitcoin community over limiting the number of transactions, bitcoin cash aims to provide a fast, cheap way of sending money across the globe.
Bitcoin core price continued to rise overnight and was at $9,378.
50 at 09:45 (GMT) on Monday, according to CoinDesk. It saw its highest value before Christmas when it reached the monumental price of just under $20,000. Cryptocurrency price: A year in charts Mon, March 12, 2018 Compare crypto currencies (Ripple, Bitcoin, Ethereum, LiteCoin) on value, market cap and supply for the past year.
