Thomas Lee, Managing Partner and Head of Research at Fundstrat, said on 7 August that the Bitcoin domain [BTC] is proving that the market is acting on recent announcements.
During an interview with CNBC Fast Money, Tom Lee also said that Bitcoin was the only game in the cryptocurrency market for a long time. In 2017, the currency had a prevalence of 80% in the cryptocurrency market and in the same year the dominance fell to 37% due to the increase in ICOs and new projects.
"Because the last year we had a lot of ICO and a lot of new projects and people got excited and I think that many people thought, that would have been the year. dominance will fall but the domain of Bitcoin is actually increasing ".
In addition, the Bitcoin domain [BTC] has risen to its highest value this year, or 49% in the last two weeks. The reason for this is the recent announcements on the cryptocurrency market. This includes the Intercontinental Exchange platforms concerning the launch of the new cryptocurrency start-up, Bakkt and the potential of a Bitcoin ETF. Tom also said that the SEC statement that Bitcoin is a commodity also contributed to the rise of the Bitcoin domain.
He said that this is making investors decide that Bitcoin is "the best home on the hard market". So the Bitcoin domain shows that the cryptocurrency market acted on the basis of what happened.
Thomas also speaks of the misery index of Bitcoin [BTC]. The low price of Bitcoin indicates that people are unhappy and the high price indicates that people are in an euphoric state.
"Below 27% means people are so unhappy that historically Bitcoin does well enough and when it is over 67% high, it means people are euphoric and generally, it's time to sell."
According to him, at the moment, Bitcoin's misery index is at 37% and is rising. This means that the Bitcoin "is not broken" if held at this level. He says that investors fear that if Bitcoin falls to $ 6,000, then they will never leave the bear market.
Tom also states that Bitcoin is much larger and a "show me token" at this time. He said that Bitcoin depends on new capital inflows and if Asian and traditional investors want to buy cryptocurrency.