In a recent interview with Bloomberg, Fundstrat’s Tom Lee spoke about catalysts that will contribute to Bitcoin [BTC]’s rise and further elucidated on the cryptocurrency’s market fate.
The cryptocurrency bull touched upon Bitcoin’s performance on the market charts and joked about how the cryptocurrency was flatlining on the graphs. His main point of focus was the support level at $6000 and how that price point was more important than expected.
Lee added that the $6000 mark was earlier considered as a consolidated cost that includes factors like mining costs. According to sources, the United States is the 41st cheapest country for Bitcoin mining just after Russia.
He also added that Bitcoin’s hold at the $6000 mark is a great sign for investors and enthusiasts alike because there is an indication of a reverse in prices. According to Lee, the prices will shoot up because of certain catalysts acting as a support for cryptocurrencies. He feels that the launch of ICE backed Bakkt will act as a required push for the positive adoption of cryptocurrencies.
According to reports, the New York Exchange’s Intercontinental Exchange [ICE] will be launching Bakkt, a cryptocurrency exchange, in November 2018. Bakkt on Twitter announced:
“With our solution the buying and selling of Bitcoin is fully collateralized or pre-funded. Our new daily Bitcoin contract will not be traded on margin, use leverage or serve to create a paper claim on a real asset.”
The financial analyst opined that the public has a different view from the actual market movement which creates a sense of panic in the cryptosphere. He also added that institutional investors get FOMO when it comes to cryptocurrencies being bullish.
Lee also touched upon how marijuana stocks coincide with the rise and fall of Bitcoin prices and claimed that the volatility in the market was a good thing. The crypto bull mostly focussed on how the cryptocurrency market right now is conducive to a risk appetite which will bring in more and more investors to its fold.
He stated that nine years down the line after the release of Bitcoin, people have profited off of it which makes it a valuable asset. Furthermore, Tom Lee feels that trade is just noise but the fact that it is on an upsurge is good for the United States.
The interview concluded by Tom Lee pitching the idea that the field of cryptocurrencies is a low correlation market but if new players want to invest, they should do so in an asset with more regulatory clarity, citing the example of Bitcoin.
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Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.