Bitcoin and other cryptocurrencies seem to be on a never-ending ride with frequent ups and downs. After crossing the $8,000 mark, Bitcoin has again touched $7,000. Despite the recent fall over the last two weeks, Tom Lee continues to advocate that cryptocurrencies are recapturing the market share. He shared his views during an interaction hosted by CNBC’s Fast Money.
Tom Lee, Managing Partner and the Head of Research at Fundstrat Global Advisors has taken a bullish stance on the current Bitcoin trend. This comes as a sigh of relief for crypto investors and enthusiasts after the Wall Street Journal published a few days back that traders were using the infamous pumping and dumping techniques which cost millions to the participants. Trading data revealed that 175 pump-and-dump schemes had been initiated across 121 digital tokens. This came as a reiteration of SEC’s beliefs that cryptocurrency market is prone to fraud and manipulation.
After unfavourable results for the three potentially promising events in the crypto space- cryptocurrency ETFs, boost from institutional players and defragmentation of regulations, it’s critical to know what can save the market.
“The news that we have seen, from the SEC saying bitcoin’s a commodity, to ICE’s announcement and the potential for an [exchange-traded fund] is causing investors to decide that bitcoin is the best house in a tough market,” said Lee.
The Bitcoin price has been witnessing a fall, and it fell below the $7K mark, which resulted in a stride of fear among traders and investors. However, Lee feels otherwise as he shared-
“Bitcoin isn’t broken if it’s holding at these levels. I think people are afraid it is going to go back down to $6,000 and never come back from those bear markets.”
In fact, Lee pointed out that Bitcoin dominance has risen from 36 per cent in January to this year’s highest level of 48 per cent in the past few weeks.
