TOM LEE 1 A WEEK AGO AND TODAY
Lee’s response to last week’s and this week’s BTC news
We would like to give you a summary of two recent interviews. Tom Lee was interviewed a week ago when Bitcoin was on a rally, going up to around $8,300. And he was interviewed again yesterday.
Let’s compare what he had to say last week and this week.
Last Monday, Fundstrat founder Tom Lee, according to ccn.com, talked enthusiastically about how BTC showed more and more strength recently.
Lee elaborated on how Bitcoin’s price recovered after a sharp 6% fall, most probably caused by the news about the rejection of the Winklevoss Bitcoin ETF proposal. The BTC price took a sudden dive from $8,300 to $7,800, in a three-hour period.
What was even more remarkable was how Bitcoin recovered in an even shorter period. It didn’t take more than 50 minutes for BTC to move from $7,800 to $8,250.
Lee emphasized that the number one digital currency’s strength to shake off a major event’s effect was a significant fact: “It’s a sign of a positive change in crypto that Bitcoin has essentially shrugged off the Winklevoss ETF rejection. If this took place in April-June (more bearish period), the crypto market would have seen a sizable sell-off”, Lee said. Bitcoin’s spectacular and recovery seemed to be another sign that the crypto market was finally moving again in a positive direction.
It didn’t last long. Before we even came out with the news and what Lee had to say, Bitcoin started to go down. And since then its value has decreased by more than $1,000. Tom Lee was interviewed by CNBC again.
Lee said today that the most important factor to focus on is dominance. At the beginning of 2017, BTC’s dominance was 80%. During that year, it went down to 37%. Many analysts and investors believed that this value’s development will continue as a straight line pointing downward, resulting in Bitcoin’s dominance going down unstoppably. What happened instead was that during the last couple of weeks it was creeping up and BTC’s dominance reached this year’s high at 48%. And that clearly shows that when it comes to voting investors’ trust to a crypto-currency, they vote dominantly for Bitcoin.
Lee also talked about the so-called Bitcoin Misery Index. It’s an indicator that shows how fearful Bitcoin owners are. If this 0 to 100 scale shows a high number it means that people feel it’s time to sell Bitcoin. It stands at 39 right now, which, according to Lee is coming from people’s fear that Bitcoin is going below 6,000 again and it will never pull out of this bear market. Lee said that the crypto-currency market is at a very early stage in its history and this is just a momentary situation. He explained it with a comparison. There are about 50 million crypto wallets at the moment. It’s similar to the number of internet users 25 years ago. In 1994, there were 30 million internet users. Now, that number is about 4.5 billion. “I think crypto wallets are going to be matching internet’s trajectory. So, it’s early”, said Tom Lee.
What the whole crypto market, people who have already invested and people and firms who are standing at the sidelines, are waiting for is, as the show host put it in words “that one blessing, somebody to come out and anoint” Bitcoin. Tom Lee’s response to BTC’s end-of-July rally and his still positive reaction to the last seven days’ dive shows that nothing can affect his optimism.