Principal analyst: $ 6,000 is the key to Bitcoin (BTC), Momentum is reversed


Despite the lower highs, Bitcoin could be growing

On Friday, Tom Lee, who recently revealed that he expects Ethereum to eclipse $ 1,900 by the end of the year, has made an appearance in Bloomberg to discuss the cousin of Ethereum or next of kin, so to speak. Opening up the cryptocurrency segment, the Bloomberg host, underlining the fact that Bitcoin has found support in the $ 6,000 range, has asked Lee what the current price level of Bitcoin is.

Lee, who is currently head of Fundstrat Global Advisor's research and a supporter of internal cryptocurrency, first jokingly pointed out that Bitcoin's lack of movement could signal that he is dying, which was obviously a blow to the criticism of this Crypt resource for heritage investors on the capital market.

Seriously, the BTC permabull noted that the $ 6,000 is a much more important "price level than we realized", adding that the break-even cost of mining still remains around $ 6,000. With this in mind, the fact that BTC has maintained this level of key support is "good news". The Fundstrat executive elaborated, stating:

And I think there are catalysts towards the end of the year, so despite the lowest highs we've seen, I think we're starting to reverse. So if you say signs of momentum, it's really good.

Explaining more about the "catalysts" to which he referred, the Wall Street Bitcoin bull drew attention to Bakkt, the developing cryptocurrency platform supported by ICE (NYSE parent company), Starbucks, Microsoft and many other names important. Lee added that not only will it be "one of the best regulated exchanges", but also that there will be a lot of work around Bakkt that will see "important investment banks" work alongside this startup and establish a focused infrastructure. on the cryptocurrency.

To put it briefly, the investor noted that "the institutions are still ready to be involved", drawing attention to the fact that Goldman Sachs, one of the most important financial institutions on Wall Street, is still "marching" forward "with its ambitious plans to enter the cryptosphere, despite false reports and" false news ". Ending his comments on institutional interest in this budding industry, Lee said:

I think the major institutions get FOMO (fear of losing) if Bitcoin increases. Remember, you have to find the volatility: today the institutions want vol (volatility), so you can buy vol in cryptography and can integrate [your investments].

Pot Stocks and BTC: an inverse correlation?

In order to have some more joke, the head of research Fundstrat, which became a de facto face of the financial advisory firm, continued to comment on the volatile correlation between the cannabis and BTC stocks, observing:

So I do not know if [there was an option] on Robinhood that has allowed you to put on a couple exchange there – sell BTC, buy Tilray and Cannabis.

Asked about the relationship between these two markets at an early stage, he explained that speculation is that both these markets could be seen as a "good sign", as this indicates a strong risk appetite for the exposure to assets and related investments. in Cannabis and Crypto.

Concluding his appearance on the financial markets media with a high note, Lee stressed that crypto investors should continue to focus on Bitcoin, since it has the strongest community, has more cases of use and is proving a "significant" "means of exchange".

Photo by Andre Francois on Unsplash

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