In spite of all the recent happenings in the crypto space, the price of bitcoin and altcoins have been dropping at a steady pace, with bitcoin declining to trade below the $7,000 level.
Yesterday, CCN reported that regardless of a $5 billion recovery in the crypto market, low trading volume made it more possible for further declines in value anytime soon. The report went on to add that:
“However, in the past several hours, the price of bitcoin and ether have started to drop once again, testing $7,100 and $410. If the volume fails to recover in the next 12 hours, bitcoin and ether will likely breach the $7,000 and $400 levels in a similar way as they did on August 5.”
This prediction has now happened with BitMEX CEO Arthur Hayes claiming that BTC may need to test $5,000 before reaching a bottom.
Yet, Tom Lee of Fundstrat is of the view that he has a solution to the issue and emphasizes one solution that could be beneficial to the cryptocurrency.
According to Lee, bitcoin’s market dominance is the ratio of BTC’s individual market cap to the joint market cap of all cryptocurrencies. Following the 80 percent drop from its peak in 2017 to 37 percent, dominance is presently at the highest it’s been all year at 48 percent.
For Lee, investors are certainly responding to the bullish progress in the bitcoin space. Even though the price has not recovered as expected, the rise in dominance proves that investors are up-to-date with the upcoming ETFs and ICE’s soon-to-launch crypto market.
Lee emphasizes that the “Misery Index” is also at comfortable levels.
Lee urged investors and analysts to relate with Asian investors, where several new investments in cryptocurrency are stemming from, noting that there are fewer chances for Asian investor to understand ICE or know the benefits of the latest announcement. He also pointed out that the present market is basically “Peter paying Paul,” moving in its circle, and that crypto is still an early stage with more upcoming developments.