Wall Street Bull Tom Lee Bullishly Claims That Bitcoin Is Bouncing Back
Wall Street bull Tom Lee says that the cryptocurrency is gradually regaining market share despite its tumble during the past two weeks. Lee said so while referring to the U.S. Securities and Exchange Commission (SEC), on CNBC’s “Fast Money:
“The news that we have seen, from the SEC saying bitcoin’s a commodity, to … the potential for an [exchange-traded fund] is causing investors to decide that bitcoin is the best house in a tough market.”
BTC has been a roller coaster ride, after topping $19,000 in December and a low of $2,900 in August. It dropped below $6,000 at the end of June marking its lowest value all year, according to sources. The first generation cryptocurrency then rose to about $8,400 in July, before it tumbled back to around $7,000 most recently. Lee stated on Monday:
“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.”
Despite the impulsive developments in the cryptocurrency world, bitcoin’s price remains low. In June, The Securities and Exchange Commission officials made it clear that cryptocurrencies would not be treated like securities and have labeled BTC a commodity, publicly. With the Intercontinental Exchange partnering with major companies, including Starbucks and Microsoft, to create an open and regulated digital asset ecosystem, Crypto bulls hope that this would help legitimize BTC.
Lee emphasizes that bitcoin is still a dominant cryptocurrency. He explains that at the start of 2017, bitcoin claimed about 80 percent of the overall cryptocurrency market; about a year later it’s market share has dropped to only about 36 percent. Notably, BTC managed to creep up for the rest of the year. Past couple of weeks the market share to soar up to around 48 percent, its highest level all year. Lee mentions, that even if Bitcoin is not directly reacting to the news, the regaining of its market share is a true sign.
“I think bitcoin dominance is actually showing the market is reacting to what’s been taking place,” Lee stated
According to Coindesk, Bitcoin was up 2 percent Tuesday morning, trading at $7,075. While the future of Bitcoins is unpredictable, the bullishness of Tom Lee has offered crypto enthusiasts some relief.
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