Plenty Reasons to be Bearish on Equities, Would be Bullish for Bitcoin: Fundstrat’s Tom Lee

  • Trade wars, inverted yield curve, Fed cuts, Brexit, among many other reasons call for bears on equities
  • This will have a bullish impact on Bitcoin which is turning green and surging above $8,650
  • Fundstrat founder Tom Lee took to Twitter to share a list of reasons that calls for being bearish on equities.

The trade war is at the top of these reasons that is showing no signs of slowing down any time soon. The US and China are already seeing the effect of this ongoing war and now India has also joined the trade war with the US by imposing retaliatory tariffs on 29 US products.

As Trump’s trade wars rattle investors, Wall Street is reaching for the security blanket which is a new Federal Reserve rate cut. When the Fed officials meet next week, they are expected to clear the way for a July interest rate cut to help the US economy make it through a period of slow growth and potential impact of trade wars.

David Rosenberg a prominent Canadian economist says the Fed will cut the rate all the way back to zero while the world's biggest economy is already in a recession.

Earlier last month, US Treasury yield curve inverted again for the first time since March, foreshadowing an economic recession.

Senior economists from political parties of both sides are also saying that it may not work as smoothly and can pose risks to America’s decade long recovery as the 2020 presidential election draws nearer.

United Kingdom’s withdrawal from the European Union or the Brexit has already shaken the markets and affected currencies and is yet to come to a conclusion.

An interesting but very true one is that tweets control the markets. We saw it when Elon Musk announced that he will take Tesla private ($TSLA stocks jumped 11%), Musk wielded this power before in 2013 as well.

President Trump is famous for using Twitter to attack political foes, trading partners, and media companies, that has visible effects on the market.

Bullish Momentum for Bitcoin

While these factors and more are behind the bears in the equity market, Lee believes this will have a “bullish” impact on Bitcoin.

BTC/USD is currently trading at $8,666 with 24 hours gains of 5.24 percent while being up 134 percent till date in 2019.

Recently, Fundstrat’s technical strategist Rob Sluymer that has been recommending investors to be patient following the 60 percent surge in May now says there’s early evidence of renewed potential for gains as Relative strength index momentum gains to turn upward from neutral.

“Another upside attempt appears to be developing for most cryptocurrencies. Increase exposure. We expect Bitcoin to stage another rally from current levels toward next resistance between $8,800-$9,000,” Sluymer wrote.

Bitcoin’s price is $45,535.58 BTC/USD exchange rate today. The real-time BTC market cap of $852.11 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $32.76 Billion and live coin value change of BTC -0.41 in the last 24 hours.

Live Bitcoin (BTC) Price:

1 BTC/USD =$45,535.5799 change ~ -0.41%

Coin Market Cap

$852.11 Billion

24 Hour Volume

$32.76 Billion

24 Hour VWAP

$44.51 K

24 Hour Change


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