By CCN Markets: With all of the crypto attention currently centered on Facebook’s Libra cryptocurrency, bitcoin could be gearing up for its best run to date. Fundstrat Co-Founder Thomas Lee believes that it is headed much higher in the near future, predicting that a fear-of-missing-out, or FOMO, will catapult the bitcoin price to $40,000 sooner than later.
According to a Bloomberg report, Fundstrat’s latest report suggests that a higher bitcoin price is being supported by “market transparency and integrity.” In turn, a rising BTC price is expected to fuel gains in the Grayscale Bitcoin Trust (GBTC), which “tracks bitcoin’s market price” and boasts more than $2 billion in AUM as of June 17.
Fundstrat’s Lee expects that FOMO could set in once bitcoin crosses the $10,000 level once again, which will fuel higher returns in GBTC. According to the Fundstrat note cited in Bloomberg:
“Bottom line: Crypto winter looks over. Investors need to overweight bitcoin. And a good way to gain exposure is via GBTC.”
Facebook’s Crypto a ‘Gateway to Bitcoin’
Grayscale’s GBTC currently trades at $11.66 in the OTC market. Lee points to the GBTC’s “NAV premium because of scarcity.” The trust, which touched on $12 this week, is trading at summer 2018 levels, having benefitted from the rising popularity of crypto thanks to Facebook and other catalysts. Crypto market leaders are largely bullish on Facebook’s new Libra coin. Travis Kling of Ikigai told Bloomberg that rather than compete with the flagship cryptocurrency, Libra is likely to be a “gateway” for some “2.5 billion monthly active users…to bitcoin.”
Facebook isn’t the only one “pushing crypto adoption,” as pointed out by Binance CEO Changpeng Zhao.