Bitcoin
Fundstrat Global co-founder Tom Lee’s thoughts on recent Bitcoin fall
Tom Lee is a cryptocurrency expert at Fundstrat Global Advisors. He’s made name for himself by correctly predicting all kinds of markets many times over. Earlier this year, Mr. Lee made waves in the cryptosphere when he forecasted Bitcoin’s price to end the year at $25,000.
Not too long ago, Mr. Lee appeared at CNBC’s “Squawk Box” to talk about Bitcoin and other crypto topics and if you missed it, in this article we will give you the gist of it.
The interview opened asking Mr. Lee about Bitcoin. That was unavoidable in the coin’s currently calamitous state and the hash wars with Bitcoin Cash. While the red numbers in the market seem apocalyptic to many, Mr. Lee explained that the outlook is not as bad for several reasons. First of all, Bitcoin is currently more of a commodity than an actual currency, so tragedy will hardly come up of the current low market.
He also explained that crypto has two main players: users and speculators and that users will ultimately dominate the market because there is a new wave of users coming soon in the form of institutions. New regulatory clarity will give institutional investors and users the confidence they’ve lacked so far to adopt Bitcoin (and many other digital assets), come into the game and make the market mature at last.
The interviewer asked Mr. Lee explicitly about Bitcoin’s price by the end of the year, because the current trends make the $25,000 mark seemingly unreachable. Mr. Lee agreed that it doesn’t look so hot right now but he still said that $15,000 by year’s end is reasonable. When he was asked why he said that many different things could make this happen. He wasn’t specific about what could those things be, but he was very confident nevertheless.
Bitcoin ‘seriously’ undervalued
He also explained that Bitcoin is currently seriously undervalued. In his estimation it takes $7,000 USD to mine a full coin so, being a commodity, it won’t stay under that price for much longer because commodities are never sold at prices that are under production costs. On further explanations, he said that as the world grows more digital every day, digital currencies can only become more relevant and accessible. That will make adoption easier, more common, and will rise value for the market.
When the interviewers insisted on describing the sorry state in the cryptosphere, Mr. Lee explained that it’s not as bad as it looks. XRP, for instance, is doing quite well and is quickly becoming a viable alternative for Bitcoin.
To take his point further, he compared how much money is moved around the world using Bitcoin and Paypal. Bitcoin’s piece of that market is superior by a factor of three, even as the price goes down. In his estimation, it will be six times bigger than Paypal in two years, more or less.
Next, he described resistance to digital assets as a normal feature of the generational gap.
During the interview, Mr. Lee was pressed to be a prophet of doom of sorts, but he never lost his ground. Not just around Bitcoin, his arguments on every point were rational, calmed and he offered data when it was needed.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image Courtesy of CNBC.
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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