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Fundstrat’s Tom Lee Still A Raging Bitcoin (BTC) Bull, Here’s Why

Tom Lee has shown his face on mainstream media once again to tout the merits of Bitcoin (BTC). On a recent segment of CNBC’s “Futures Now”, the Fundstrat Global Advisors head of research lays out what he sees is going for the cryptocurrency. Like many of his other appearances, his comments had bullish undertones. But why is Lee bullish on BTC?

Macroeconomy Trends to be Bitcoin Tailwind

He tells CNBC that more likely than not, 2019 will be the year of repair for this market, adding that the macro picture could provide Bitcoin with a bit of a boost of nitrous oxide. Lee explains that there has been a risk-on rally in global markets, potentially giving BTC and other digital assets, deemed risk-on by many traders, the ability to see some incoming cash flow.

Funnily enough, some would deem this noticing on macro markets as moot, as many economists are expecting a slow in the growth of the global economy over 2019 and 2020, potentially curbing the risk-on rally that Lee sees.

Drawing attention to the U.S. dollar, Lee explains that the fact that the currency isn’t surging should be a tailwind for the flagship cryptocurrency over the coming year.

200-Week MA, JPM Coin, Etc. To Provide BTC With Positive Price Action

He goes on to draw attention to technicals, touching on the ever-important 200-Week moving average. The New York-based investor, known for his incessant optimism in a variety of markets, notes that BTC has been bouncing around the aforementioned technical support, potentially indicating that it has found a semblance of a bottom.

But this factor pales in comparison to developments (fundamentals) that the cryptocurrency space has seen in the past weeks alone. Lee specifically touches on the launch of JP Morgan’s own digital asset, and similar ventures from both Facebook and Telegram.

He explains that in a world where there are less than 50 million active digital asset wallets, but billions of Visa or Mastercard holders, these corporate cryptocurrencies will be integral in driving adoption. This adoption, of course, boost Bitcoin’s network effects, making JPM Coin and projects of a similar nature bullish catalysts.

Fundstrat’s co-founder and de-facto figurehead even touchea bit on the adoption that cryptocurrency has seen in the hyperinflation-hit Venezuela, where locals are finding a true use case for a deflationary, decentralized, and uncensorable asset in Bitcoin and altcoins.

Closing off his guest segment, the Bitcoin bull, who still believes that $25,000 for each BTC is viable, notes that if the cryptocurrency continues to hold around $4,000 in the months to come, he would be convinced that it would be geared up for a full-on rally.

Title Image Courtesy of Descryptive.com Via Unsplash

The post Fundstrat’s Tom Lee Still A Raging Bitcoin (BTC) Bull, Here’s Why appeared first on Ethereum World News.

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Bitpay CEO: Bitcoin Price Built Off “Speculation”

Big Component Of Bitcoin Price Is “Speculation”

Since the monumental run-up in the Bitcoin price during 2017, pundits have speculated that traders have ousted investors, creating an environment that has been rife with price speculation. In a recent interview with CNBC’s Squawk Box, Stephen Pair, CEO of the world-renowned crypto-friendly payment processor that is BitPay, confirmed this theory.

Speaking on the aforementioned outlet’s “Squawk Box” segment, Pair, presumably located in BitPay’s Atlanta headquarters, was first asked if BTC at $3,200 (current prices) is a fair value for the well-recognized digital asset. Turning the question somewhat on its head, long-time crypto savant Pair, formerly of IBM, noted that “it’s hard to say,” as a big component of the asset’s value is centered around speculative orders, which attempt to gauge how much impact BTC will have on society.

Yet, he added that a “small component” of BTC’s U.S. dollar valuation is tied to the utility of the asset, like as a digital store of value or an extremely secure digital medium of value — the latter of which being BitPay’s focus as an innovative startup.

BitPay CEO Speaks On (Bullish) Crypto Catalysts 

Pair, when questioned about his colleague’s prediction that the Bitcoin price could surpass $15,000 to $20,000 in 2019, went on to discuss catalysts that could push this cryptocurrency higher in the years to come. The CEO of the American fintech startup noted that while BitPay already processes $1 billion in BTC/BCH transactions yearly, he wants this sum to grow to $10 billion and $100 billion in the years to come, as a sign of the growing influence of cryptocurrencies on a global scale.

With adoption comes higher prices, Pair added, as is dictated by the principles of network value, and the simple fact that consumers will purchase BTC en-masse if payment solutions are seamless and cheap.

The industry chief also alluded to the theory that the arrival of institutional players and products, like a Bitcoin-backed exchange-traded fund (ETF), Bakkt’s crypto futures, and other related forays, could push prices higher, as such efforts could also drive adoption, and subsequently, the Bitcoin price.

Pair Has Confidence In Blockchain

An overarching theme in 2018’s crypto market has been a shift from cryptocurrencies to blockchain applications. So, it should as no surprise that the CNBC anchor went on to query Pair about decentralized ledger technologies, which underpins the Bitcoin Network and its altcoin brethren. Pair stated that he has confidence in the decade-old innovation, but added that when it comes down to the nitty-gritty, blockchains are just a form of a database, rather than an abstract concept that some see it as.

Yet, he added that over time, as the world progresses, companies will begin to adopt blockchain-like data management techniques for a range of use cases, one of which being cryptocurrencies, of course.

In closing, touching on what lies in this industry’s future, the insider noted that Bitpay’s thesis is that within three to five years, most payments will be conducted on blockchains, while a majority of assets would be situated on the same technology.

Bitcoin, Ethernet, Computer Board Title Image Courtesy of Marco Verch on Flickr

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Bitcoin to Be Worth ‘Great Deal More’ in Three Years, Circle Co-Founder Says

Circle co-founder Jeremy Allaire believes that crypto valuations will increase, and BTC will be worth “a great deal more” than it is now.

Jeremy Allaire, co-founder of crypto finance company Circle, told CNBC in an interview Friday, Dec. 14, that Bitcoin (BTC) will be worth “a great deal more” than it is now.

When asked about the Bitcoin price in three years, Allaire told Squawk Box host Andrew Ross Sorkin that he does not make “significant price predictions,” while adding, “I think it is certainly going to be worth a great deal more that it is today.”

Allaire also stated that while Bitcoin is attractive as a non-state store of value, a slew of other tokens will enter the space, and the bases of their valuations will be diverse. He further explained:

“I do not think it’s a winner-take-all [situation]. We have the phrase ‘the tokenization of everything,’ and we think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”

Allaire claimed that the crypto sphere needs clearer regulation, while noting that the United States already has “more regulatory clarity than almost any other market in the world.”

The Circle co-founder cited the need for clarification of whether crypto assets are currencies or commodities, and which crypto assets should qualify as securities. Furthermore, he believes the industry needs to define whether it needs rules for secondary trading of digital securities or a “kind of commodity spot market supervision for the crypto space.”

Earlier this week, major crypto bull and co-founder of Fundstrat Global Advisors Tom Lee claimed that the fair value of Bitcoin is “significantly” higher than its current price and should be somewhere between $13,800 and $14,800. Moreover, he still thinks that the fair value of Bitcoin could reach $150,000 after it has been more widely adopted.

As for crypto adoption, a commissioner of the U.S. Securities and Exchange Commission (SEC) Hester Peirce, dubbed “Crypto Mom” by the community for her pro-crypto stance, thinks that the process might take a long time. She urged the public not to ‘hold its breath,’ waiting for a Bitcoin ETF, as it could be “20 years away from now or it could be tomorrow.”

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Crypto Fund Wagers $1 Mln It Will Outperform S&P 500 in ‘Buffett Bet 2.0’

Crypto asset manager Morgan Creek Digital has issued a $1 million bet against the performance of the S&P 500 stock market index.

Crypto-focused institutional asset manager Morgan Creek Digital has issued a $1 million bet against the S&P 500 (SPX) stock market index, a press release shared with Cointelegraph reveals Dec. 6.

The crypto fund has issued a wager that its Digital Asset Index Fund –– a basket of ten major crypto assets –– will outperform the SPX over the next 10 years, starting Jan. 1, 2019.

The S&P 500 is based on market capitalizations of 500 large companies that have common stock listed on major U.S. stock exchanges, the New York Stock Exchange (NYSE) or the Nasdaq Stock Market (NASDAQ).

The challenge from Morgan Creek Digital, dubbed “Buffett Bet 2.0,” evidently echoes a similar bet made by Wall Street’s prominent crypto critic Warren Buffett, who in 2008 bet $1 million that the S&P 500 would outperform a group of hedge funds over a ten year period.

If the bet is taken up, the firm noted the plan would be for the winner to donate the gains to charity, also mimicking Buffett’s move upon winning his S&P bet in 2017.

Anthony Pompliano, co-founder and partner at Morgan Creek Digital, told CNBC that the new challenge could illuminate more than just the performance of crypto markets for many people:

“A lot of people might look at this and just think we’re bullish on crypto — but you need to look at what asset we’re going up against. Public equities aren’t exactly at their all time highs either.”

In order to justify his firm’s bet, the investor has also reportedly pointed to recent losses suffered by FANG –– a group of high-performing tech stocks in the U.S. market, namely Facebook, Amazon, Netflix and Google. Facebook is currently down 24 percent percent loss year over year, as CNBC reports.

Pompliano made a similar observation about the performance of traditional stocks in a tweet last month, stating that FANG stocks were down 20-40 percent from their all-time highs, while the Dow Jones Industrial Average (DOW) had its “worst Thanksgiving week since 2011.”

Buffett himself has come out multiple times to provocatively criticize cryptocurrency, calling it everything from a “mirage” to “rat poison squared.”

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Barry Silbert: Bitcoin Cash Hard Fork Was An Industry “Disservice”

Since the Bitcoin industry entered late-October, there has been an auspicious rise in search queries for the cryptocurrency, in spite of the downtrend that shocked crypto-centric investors worldwide. As reported by Ethereum World News, per Google Trends, the “Bitcoin” query has risen to a four-month volume high. The search term, “Bitcoin Cash,” also saw a notable explosion in volume.

Tom Lee and Mati Greenspan, two industry savants, both commented on this trend, with the former calling the statistic “interesting,” while the latter noted that “we’re back.” And interestingly, mainstream media outlets have picked up on this renewed trend, recently covering the cryptosphere incessantly and through a variety of different mediums.

CNBC, for one, recently began to call upon the executives, analysts, and researchers in the cryptosphere to make appearances on their television segments, which have become fairly infamous for their (sometimes inaccurate) coverage of Bitcoin.

Last week, they brought on Barry Silbert, the man behind crypto-centric conglomerate Digital Currency Group (DCG), to speak on the current state of cryptocurrency affairs and its potential future.

Bitcoin Cash Hard Fork Was An Industry “Disservice” 

Discussing an industry hot topic, Silbert, who owns/manages stakes in this industry’s foremost startups, noted that the Bitcoin Cash debacle, which hasn’t even come to its final head just yet, is a distraction for investors.

Elaborating on this point, clearly indicating that he isn’t a big fan of the fracas, but remains a Bitcoin proponent, the DCG chief noted:

The fork is a distraction. The industry did itself a real disservice, but let me give you the other side of that — if Bitcoin emerges as the winner, it will have been battle-tested, as it has been challenged by competitive cryptocurrencies and internal development strife.

Silbert: Death Of ICOs, Ethereum (ETH) Sell-Off, And Crashing Stocks Prompted The Crash

Drawing the conversation back to this budding industry’s flavor of the month — the dismal market conditions — Silbert did his best to reason why Bitcoin, coupled with its altcoin brethren, underwent a jaw-dropping sell-off that caught investors with their pants down, as it were.

He first explained that crypto’s largest investors are funds/groups with asymmetric risk appetites. Silbert added that these funds often hold positions in high-risk, often-tumultuous technology stocks, coupled with cryptocurrency holdings. So, seeing that lines that can be drawn between the recent sell-offs seen in equities and crypto, it is apparent that the macro market has been proding Bitcoin investors.

The DCG head, one of the crypto industry’s foremost entrepreneurs then drew attention to the ICO market, which has been beaten and bashed by an SEC crackdown recently. Keeping in mind that ICOs primarily catalyzed 2017’s monumental bull run, the fact that “ICO market is completely unwinding” has evidently been a bearish catalyst for crypto assets.

Further speaking on this purposed factor, he explained that as ICO-funded tokens have collapsed, startups have sought to liquidate their war chests, which were primarily filled with Ether to stay financially afloat,

Last but not least, he noted that crypto hedge funds are finally seeing their first redemptions, putting further selling pressure on the cryptocurrency market, presumably through Bitcoin sell orders.

Title Image Courtesy of Marco Verch on Flickr

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Study: Crypto Coverage in Media Peaked Following Market Slump

A recent study by Clovr has revealed that the media coverage of digital currencies spiked when the market slumped over the past five years.

A recent study by blockchain-oriented research firm Clovr found that cryptocurrency coverage in the mainstream media spikes when the market drops off. The analysis tracked the correlation between coverage on crypto values over the past five years and the sentiments of published materials.

Crypto

Source: Clovr

In the course of its research, Clovr surveyed 48 mainstream U.S.-based and international media outlets for pieces covering cryptocurrency from Jan.1, 2013, to July 31, 2018. All articles were analyzed using sentiment analysis tool Valence Aware Dictionary and sEntiment Reasoner (VADER) and the Natural Language Toolkit (NLTK) library in Python. The analysis included the full text of 7,527 online news articles.

In the last weeks of 2017 crypto coverage in the media spiked following a sharp drop-off in cryptocurrency, which was attributed to a confluence of factors such as strong performance of altcoins, and Bitcoin (BTC) holders selling off their coins to pay for holiday purchases. The same trend was reported in May and June 2018, when a further drop in crypto values was followed by a temporary increase in articles. The study further reads:

“As recently as 2016, positive articles far exceeded negative ones, both in terms of volume and intensity. As coverage surged in mid-2017, however, articles expressing negative sentiment grew more common. This trend was fueled in part to grim prognostications by the likes of Warren Buffett and Mark Cuban, who guessed that ‘a bubble’ was underway.”

Clovr

Source: Clovr

As for news sites that covered digital currency most often, Clovr notes Forbes and Business Insider, where “a combined 1,335 articles from these two outlets alone were more positive than the overall median sentiment of the sampled articles, while only 413 of their articles fell on the negative side.”

CNBC released almost 1,000 crypto-related articles during the analysed period, with 52.9 percent being positive and 47 percent being negative. At the same time, American far-right news website Breitbart News along with left leaning American news organization Raw Story cumulatively published 91 negative articles and just one positive piece. The average sentiment of Reuters, USA Today, and Gizmodo articles reportedly decreased substantially over time.

As previously reported, BTC use for commercial payments reduced significantly this year, according to a study by Chainalysis. Although Chainalysis recognizes a growing stability of BTC, the value of Bitcoin payments reportedly slumped from $427 million last December to $96 million in September 2018.

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CNBC Draws Flak For Upcoming “Bitcoin: Boom or Bust” Documentary

CNBC ‘Embraces’ Crypto With Fully-Fledged Documentary

CNBC has quickly become near-infamous in the cryptocurrency community for its controversial coverage of this asset class. And while the mainstream media outlet’s coverage of crypto has been criticized time and time again, it seems that the firm’s higher-ups aren’t fazed, recently revealing that CNBC would be airing a Bitcoin-centric documentary.

On Saturday afternoon, the American CNBC news outlet announced that it would be airing a documentary that would “explore the world of bitcoin.” In a press release issued a few days earlier, CNBC wrote the following regarding the description of the documentary:

This documentary is an eye-opening journey that proves to be as informative as it is entertaining and unexpected. Lee offers viewers a rare look inside the wild world of bitcoin, uncovering the unusual landscape and cast of characters surrounding it, and ultimately, allowing viewers to take their own side in the crypto craze.

Along with the reveal of the documentary’s name — “Bitcoin: Boom or Bust” — the firm also unveiled a 90-second trailer, which was likely aimed at getting users interested for the Monday, August 27th air date. Instead of building hype, however, the release of this announcement has seemingly backfired, with crypto enthusiasts, personalities, analysts and investors coming out en-masse to pick apart the short, yet contentious trailer.

Firstly, users came out to berate the outlet for its use of “HODL,” a term that has been immortalized in the heart of the cryptocurrency community. In the trailer, CNBC host Mellisa Lee, draws attention to HODL, noting that it is a popular acronym for “hold on for dear life.”

As Ricardo Spagni, a foremost Monero developer, points out, HODL is not an acronym, but rather an insignificant, yet hilarious typo that gained a cult following in the crypto community following late-2013. Spagni, poking fun at the outlet’s use of the term, wrote:

It’s not an acronym, you incompetent buffoons. Please do the tiniest bit of research FIRST!

Last but not least, the documentary’s focus on a Bitcoin diehard, dubbed “Crypto Kid,” who seems to be set on portraying his somewhat over-the-top character, instead of providing viewers with an informative look into Bitcoin and related topics. Bitcoin millionaire Crypto Kid, whose legal name is Justin, is such a diehard that he apparently sold a majority of his worldly possessions for crypto, and now lives in a treehouse as an expression of his “frugal” lifestyle.

While there isn’t anything inherently wrong with “Crypto Kid,” many critics stipulated that a focus on a more relateable cryptocurrency enthusiast would have been a better choice for viewers.

Twitter user Hector Hernandez proposed for CNBC to interview industry leaders, like Andreas Antonopoulos or Nick Szabo, as he speculated that the outlet was trying to “ridicule the crypto movement.”

Anyhow, keeping the trailer (and the subsequent response of cryptocurrency investors) in mind, it would be no surprise if Monday’s full release of the documentary will result in an even harsher round of backlash for CNBC.

Photo by Andre Francois on Unsplash
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Crypto Market Sees 3% Pullback After A Short-Term Recovery

As Tuesday rolled around, many traders thought that the worst was yet to come for the market, with critics expecting Bitcoin to chip away at the $5,800 support as the week continued. For those who are unaware, the $5,800 level has been continually cited as a strong line of support, with analysts highlighting previous bounces around this price, along with an amassment of technical indicators.

But to the surprise of some, on Tuesday, the crypto market began a slow recovery of its recently-established year-to-date lows.

From $190 Billion To $220 Billion — The Market Recovery

The valuation of all cryptocurrencies recovered from a low of $190 billion to $220 billion within a three-day timespan, with this move restoring faith in an otherwise bearish market. A majority of cryptocurrencies saw strong gains throughout the past three to four days, with Bitcoin taking a cautious move from $5,950 to $6,600 that was backed by consistent volume.

But with this move, altcoins have seen an unexpected resurgence, with Bitcoin dominance taking a three percent dive even as the market continued upwards. As reported by Ethereum World News, cryptocurrencies like Nano (NANO), VeChain (VET), and Populous (PPT) all saw staggering gains of 30% or more, which was quickly attributed to the decreasing Bitcoin dominance figures. Traders saw their portfolios turn green overnight, and a slight sense of FOMO (Fear of Missing Out) return to the minds of optimistic traders.

However, some industry leaders aren’t convinced that the bear market is over yet. Susquehanna’s head of digital assets, Bart Smith, recently claimed that this recovery, albeit relatively strong, could just be a “bear market rally.” This sentiment was doubled-down by Dan Nathan, a CNBC trader and Fast Money panelist, who also agreed with what Smith had to say.

While Arthur Hayes, the CEO of BitMEX, still expects Bitcoin to reach and establish a low of $5,000 before eventually continuing to new all-time highs. Moreover, some analysts expect that this is a “dead cat bounce,” where the price(s) of a publicly-traded asset sees a quick recovery after a downtrend, only to fall further at a later date.

“Too Much Of A Good Thing Is A Bad Thing”

Attesting to this bearish sentiment, on Saturday, traders were reminded of the age-old saying — “too much of a good thing is a bad thing” — as the market experienced a slight pullback after the aforementioned recovery.

At the time of writing, Bitcoin is currently down by 2%, with altcoins posting similar losses. It remains to be seen whether the market will continue to head lower in the near future, but according to the traders on CNBC Fast Money, the technicals on Bitcoin’s chart has begun to show signs of weakness. CNBC analyst David Seaburg stated:

“Look at just the charts, without any other knowledge, it looks like its going lower. The technical set-up right now for Bitcoin does not look promising in my eyes.”

Michał Mancewicz

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Are The Bitcoin Bulls Back? Brian Kelly Weighs In

As reported by Ethereum World News, the cryptocurrency market has been on a surprising tear over the past 24 hours, with a majority of assets posting gains of upwards of 6-7%. At the time of writing, Bitcoin stands at $6,400 after a brief step over the $6,500 line, while a majority of altcoins have seen a return of upwards of 5%. Some altcoins, like Nano, have had an astounding day, with bulls pushing the price of the cryptocurrency up by 25% or more.

Although the cryptocurrency market may have been on thin ice before this recovery, the ice isn’t so thin now, with Bitcoin establishing lines of support at higher lows.

On Wednesday, Bria’s “Fast Money” segment covered this recovery, with Brian Kelly, CNBC’s in-house crypto analyst, doing his best to reason why the market saw such a strong rebound.

Kelly opened up his section calling the market’s price action a “wild ride,” alluding the trials and tribulations the market has faced over the past few weeks. The analyst went on to draw attention to the performance of BTC before, during, and after the expiry of CBoE-based Bitcoin futures. According to statistics which CNBC has attributed to Justin Stanislaw, Bitcoin often does poorly in the days leading up to an expiry date, but sees a 10% move upwards in the week following a futures expiry.

Likening today’s expiry to a similar occurrence, Kelly noted that following the April futures expiry, Bitcoin saw a 20% gain in a mere 6 days. While not explicitly stating it, it’s clear to see that founder of the crypto-centric BKCM fund is expecting for Bitcoin to continue to experience positive bouts price action over the next few days.

To add fuel to the metaphorical bullish flame, Kelly, who has become a near-notorious permabull, added that Bitcoin may be undergoing a short squeeze, as shorts cover their losses in this potential trend reversal.

This sentiment sparked a question from another CNBC panelists, who asked if “these other cryptocurrencies” will bottom out along with Bitcoin. Kelly responded, stating:

They (altcoins) are still quite correlated (with Bitcoin). Over the last 60 days or so, Bitcoin has really been the leader — a lot of that had to do with the speculation about an ETF. But what you did see today is stuff like Ethereum almost 10% off yesterday’s lows, stuff like Stellar Lumens — still holding up quite well. So yes, if you get a 10 or 15 percent run on Bitcoin on a short squeeze, it should bring everything else back up.

So as is normally the case, it is likely that if Bitcoin runs, so will a majority of altcins, albeit with some variance in either the bullish or bearish direction.

However, some had their doubts, including CNBC trader Dan Nathan, who queried Kelly on if the capitulation phase of the market has “petered out.” Turning the question somewhat on its head, the cryptocurrency bull noted that $5,900 may prove to be a level of support if a sell-off continues. Nonetheless, it seems that with this episode of CNBC Fast Money passing by, Kelly remains as bullish as ever.

While some were quick to cast Wednesday’s bout of positive price action aside, calling it a classic bull trap, there are some optimists who are convinced that this might be the beginning of the end of the crypto bears.

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Bitcoin Sees $350 Recovery, Amidst Altcoin Drop Off

As Ethereum World News reported on Friday, Bitcoin saw a rapid sell-off from $6,450 to the $6,100 price level, as a direct result of an influx of sell-side volume cascading through the whole cryptocurrency market.

This move unfortunately set a new one-month low for the price of Bitcoin and a new year-to-date low for the collective valuation of the cryptocurrency market.

As Bitcoin hovered around $6,100, some technical analysts began to speculate that Bitcoin’s next stop would be at the heavily contested $5,800 level of support. But as seen by Saturday’s strong recovery, with the price of the foremost digital asset surging back to $6,400, this move lower to establish new levels of support has been staved off, or at least for now anyway.

However, this time around, altcoins didn’t follow Bitcoin’s ~4% recovery. As it stands, a majority of altcoins have still suffered, posting losses of anywhere from -4% to -10% (and beyond).

Over the past 24 hours, Ethereum has unarguably had a dismal performance, falling over 12% to a low of $307 before slightly rebounding to trade at $325 now. IOTA and XRP follow closely behind in terms of percentage losses, posting 9% and 8% losses respectively.

This widespread capitulation in altcoins has led Bitcoin’s market dominance to see an abnormal surge upwards. At the time of writing, Bitcoin dominance sits at a hefty 51%, which is the highest this figure has been since December 2017. While the relative strength of digital gold surprised more than a few traders, to an assortment of knowledgeable traders, this comparable astronomical rise was an expected event.

One of these knowledgeable traders would be Tom Lee, who recently sat down with CNBC Fast Money to explain his opinion on Bitcoin’s dominance, and what has been catalyzing its movements as of late. Speaking with panelists, one of Wall Steet’s foremost Bitcoin bulls stated:

“Bitcoin’s dominance has been creeping up… So it tells us that the news we have seen, from the SEC saying that Bitcoin is a commodity, to ICE’s announcement and a potential for a (Bitcoin) ETF, are causing investors to decide that Bitcoin is the best house in a tough neighborhood. So I think that Bitcoin dominance is actually showing that the market is reacting to what is good news.”

Image Courtesy of CNBC and Jeff deGraaf

It is important to note that although this move downwards was by not bullish, to say the least, Bitcoin didn’t break the ever so important resistance line pointed out by well-respected technical analyst Jeff DeGraaf. If Bitcoin moves under the line at ~5800, DeGraaf expects the technical state of the asset to go in a so-called “game-over” phase, which isn’t the best sign for such an early-stage investment.

But as aforementioned, the fact that Bitcoin didn’t break that level shows that some hope remains for the fate of this asset. So as Bitcoin begins to pose a stronger shot at a recovery, maybe Dan Morehead’s prediction of a market overreaction to the most recent SEC verdict regarding a crypto-backed ETF might be right after all.

Photo by Austin Neill on Unsplash

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