Wall Street bull Tom Lee is adamant that bitcoin is continuing to increase its market value, in spite of the price drop over the past two weeks. This will be of some comfort to enthusiasts of the cyptocurrency, which has been on a downward slide since the end of last year.
Lee said about the cryptocurrency:
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.
Bitcoin dropped to just over €5000, its lowest value this year, in June. It has recovered somewhat since then, increasing to over €7000 at the end of July, before it fell back to below €6000 (just over $7000) in the last few days.
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.
Bitcoin’s price is staying fairly low in comparison to the end of the last year. This is despite many developments in the crypto world.
In June, the U.S. SEC labeled bitcoin as a commodity and made it clear that cryptos, unlike ICOs, would not be treated like securities. Last week the Intercontinental Exchange announced a partnership with several major companies, including Microsoft and Starbucks, a move which crypto enthusiasts believe could help to legitamise bitcoin.
Bitcoin’s market share a better indicator of its recovery
However, although bitcoin is not reacting the the news, Lee argues that the true sign of its recovery is its regaining of the crypto market share.
In early 2017, bitcoin claimed about 80% of the crypto market. Within a year, this had dropped to 36%, but has slowly been recovering throughout 2018. It now claims around 48% of the crypto market.
According to Lee:
I think bitcoin dominance is actually showing the market is reacting to what’s been taking place.