Want the Bitcoin price to surge to new highs? You’d better start buying stocks – or at least invest in an S&P 500 index fund. | Source: Scott Olson / Getty Images / AFP
It seems like a lifetime ago that the Bitcoin price grazed the $20,000 mark in late 2017, and bulls have been pining for a new breakneck rally ever since. According to Fundstart Global Advisors co-founder Tom Lee, the catalyst for BTC’s march to a new all-time high could come from an unlikely place: the stock market.
Tom Lee: Bitcoin Needs the Stock Market to Stay in ‘Risk-On’ Mode
Lee theorizes that an interesting correlation has formed between the flagship cryptocurrency and equities. To illustrate that, he speculates that Bitcoin may actually become a “risk-on” asset once equities break into new territory.
— Thomas Lee (@fundstrat) September 12, 2019
Taking the large-cap S&P 500 index as a proxy for this idea, Lee told CNBC:
“In fact, we published a piece today showing our clients that if you look at the last ten years and take the three or four best years of the S&P, they’ve all co-incided with the best years for Bitcoin.”
Stocks to Take the Lead in the Next Crypto Charge