Bitcoin the ‘Best House in a Tough Neighborhood’: Wall Street Strategist

Despite the positive news seen in the crypto space recently with ICE, the owner of the world’s largest stock exchange, setting up a new bitcoin market, the rumors that bitcoin ETFs are on the way (but maybe not in 2018), and the classification of bitcoin as a commodity by the SEC, the price of bitcoin and altcoins has been steadily dropping in the current downward trend, with bitcoin sliding back below the $7,000 mark once again.

CCN reported yesterday that despite a $5 billion rebound in the crypto market, low trading volume made it more likely that another decline in value was incoming, stating:

“However, in the past several hours, the price of bitcoin and ether have started to drop once again, testing $7,100 and $410. If the volume fails to recover in the next 12 hours, bitcoin and ether will likely breach the $7,000 and $400 levels in a similar way as they did on August 5.”

This has now come to pass, with BitMEX CEO Arthur Hayes stating that BTC may need to test $5,000 before a bottom can be established.

bitcoin price
BTC/USD | Bitfinex

However, Tom Lee of Fundstrat believes he has the answer to what seems to be a failing market, and points to one positive that he feels will save cryptocurrency: bitcoin dominance.

Bitcoin market dominance is the ratio of BTC’s individual market cap to the combined market cap of all cryptocurrencies. After plummeting from a peak of 80 percent early last year all the way down to 37 percent, dominance is now at the highest it’s been all year at 48 percent.

Speaking with CNBC, Lee argued that this reflects the fact that investors are indeed responding to the bullish developments in the bitcoin space. While the price has not increased as many had hoped, the increased dominance shows that investors are taking note of the upcoming ETFs and ICE’s soon-to-launch crypto market. As Lee said, the news has caused investors to decide that “bitcoin is the best house in a tough neighborhood.”

Lee went on to point out that the “Misery Index” is also at comfortable levels.

The Misery Index is a method devised by Fundstrat’s to measure what the analysts expect a holder of bitcoin to be feeling. Under 27 is classed as “miserable,” and Lee said that bitcoin tends to do well when sentiment drops so low, whereas the “euphoric” stage above 67 generally indicates that bitcoin may be about to experience a decline.

Currently, the misery index is at 39, which Lee described as being in line with a healthy recovery.

Lee encouraged investors and pundits to put themselves in the shoes of Asian investors, where a lot of the new investments in cryptocurrency is coming from, saying that Asian investors are less likely to be familiar with ICE or be aware of the significance of the recent news. He also stated that the current market is essentially “Peter paying Paul,” moving within itself, and that crypto is still in an early stage with more growth to come.

While the recent bear market may well be discouraging to many, the increased dominance is indeed an indication that BTC is consolidating power within the market. Whether the price action will become more significantly influenced by the numerous positive developments in the crypto space remains to be seen.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.
Join CCN’s crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.


Author: Conor Maloney

Source link

Related posts

18 Thoughts to “Bitcoin the ‘Best House in a Tough Neighborhood’: Wall Street Strategist”

  1. Scot Annino

    It’s really a nice and useful piece of info. I am glad that you just shared this helpful info with us. Please keep us informed like this. Thanks for sharing.

  2. 醫學美容-微笑唇-攝影-cosmetic-wiki

    【秀場篇】BACK TO BRITISH MESEUM SHOP中山店開幕走秀PARTY (附影片)♥♥ @ B2B崔咪TRAMY :: 痞客邦 :: TO:寶貝們,你們這群可愛的小壞蛋xdd人家昨天只是問一下說想看開幕影片的人請說''右''然後每個寶貝留言的時候都狂吼'

  3. Football Solutions Under-17 - Joachim Rothmann

    Alfie Mawson believes Fulham have got their hands on one of the most exciting players in the Premier League in Jean Michael Seri. ‘He is a great player – he frightens you sometimes’: Fulham’s Alfie Mawson in awe of team-mate Jean Michael Seri

  4. Football Solutions Daniel Sturridge (Liverpool FC)

    Xavi has broken a Champions League record after making his 143rd appearance in the competition for Barcelona on Tuesday night. Xavi breaks Champions League appearance record after coming on for Barcelona against PSG 

  5. Guti goes off duty - UEFA EURO - News

    Harry Kane has told England’s detractors ‘we’re no mugs’ as they look to kick-start their Euro 2016 campaign with victory over Wales. The Three Lions struggled against Russia, eventually drawing 1-1. England ‘more than confident’ ahead of Wales clash despite conceding late in opening Euro 2016 tie, says Harry Kane

  6. mushroom gummies

    … [Trackback]

    […] Here you can find 82301 additional Information to that Topic: […]

  7. Pros and Cons of Pair Programming

    … [Trackback]

    […] Information on that Topic: […]

  8. บาคาร่า ขั้นต่ำ 5 บาท

    … [Trackback]

    […] Here you can find 68498 more Information to that Topic: […]

  9. devops industry trends

    … [Trackback]

    […] Find More on on that Topic: […]

  10. sell dumps usa 101

    … [Trackback]

    […] Info to that Topic: […]


    … [Trackback]

    […] Read More here to that Topic: […]

  12. สล็อตวอเลท

    … [Trackback]

    […] Find More to that Topic: […]

  13. Goteborg escorts

    … [Trackback]

    […] Find More Info here to that Topic: […]

  14. mazatec mushrooms for sale,

    … [Trackback]

    […] Find More here to that Topic: […]

  15. anti screenshot

    … [Trackback]

    […] Read More on on that Topic: […]

  16. เงินด่วน กรุงเทพ

    … [Trackback]

    […] Read More to that Topic: […]

  17. limanbet giriş

    … [Trackback]

    […] Read More Info here on that Topic: […]

  18. milk frother

    … [Trackback]

    […] Info on that Topic: […]

Leave a Comment