Bitcoin (BTC) “isn’t broken” if it’s holding at the present price and instability levels, Fundstrat’s Tom Lee said to CNBC’s “Fast Money” on August 6.
In the meeting, the Wall Street bull alluded to the present indicated of Fundstrat’s recently launched Bitcoin Misery Index (BMI), which means to enlighten investors of how “miserable” holders of the money depending on its cost and unpredictability.
According to Lee, when the index is below 27, it demonstrates that future returns are great, while it outperforms 68 percent, it is “time to sell Bitcoin.” Pointing at the index’s present number of 39, Lee inferred that the energy is “recovering,” claiming that “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.”
Fundstrat’s head of research additionally called attention to the current levels of Bitcoin dominance on the crypto markets, which has flooded up to around 48 percent in the course of recent weeks in the wake of dropping to as low as 37 percent in July.
As Lee clarified, the way that significant cryptocurrency continues picking up momentum regarding market share is “actually showing the market is reacting to what’s been taking place.”
Lee also pointed at the ongoing greatest news in the business, for example, the Intercontinental Exchange’s (ICE) declaration of developing another worldwide advanced resources platform, and also the U.S. Securities and Exchange Commission (SEC) expressing that Bitcoin isn’t a security.
On Aug. 3, ICE, the administrator of 23 leading global exchanges including the New York Stock Exchange (NYSE), reported it intends to build an integrated digital assets platform to allow customers, merchants, and institutional customers to purchase, offer, store, and spend digital assets on a “seamless global network.”
In the start of July, Lee repeated his position that Bitcoin could reach anywhere between $22,000 to $25,000 before the end of 2018. Prior this mid-year, on June 27, Lee had anticipated that the BTC downtrend that occurred in June would be turned around if Bitcoin could push through an opposition purpose of $6,300 to $6,400.