Despite the fall of Bitcoin over the past two weeks, Wall Street bull Tom Lee told CNBC on Monday, August 6, that the cryptocurrency is gradually regaining market share, which should comfort fans of the first cryptoactive.
"The news we've seen, the SEC saying that Bitcoin is a commodity and the potential of a traded fund is causing investors to decide that Bitcoin is the best option in a tough market," Lee said for "Fast Money." "
From its record high of USD20,000 in December last year, Bitcoin has had a practically progressive bearish trend. It fell below USD 6,000 at the end of June, which would be its lowest value so far this year and subsequently recovered above USD 8,000 during the last week of July.
"Bitcoin does not break if it stays at these levels. I think people are afraid that it will return to $ 6,000 and that it will never return from those bear markets, "Lee said Monday.
The price of Bitcoin remains low, despite a wave of events in the world of cryptocurrency.
According to CNBC, officials of the Securities and Exchange Commission have publicly described Bitcoin as a commodity and in June they made it clear that cryptocurrencies would not be treated as securities, which offers a look at how the agency could try to regulate them
Intercontinental Exchange on Friday announced a partnership with major companies, including Starbucks and Microsoft, that will seek to create an open and regulated digital asset ecosystem.
Bitcoin may not react directly to the news, but the real sign of its return is the recovery of its share in the market, Lee said.
At the beginning of 2017, Bitcoin seized approximately 80% of the global cryptocurrency market. About a year later, in January, the share in the bitcoin market was reduced to 36%. However, it happened to crawl for the rest of the year.
In recent weeks, Bitcoin's market share has soared to its highest level throughout the year at around 48%, Lee said.
"I think the Bitcoin domain shows that the market is reacting to what has been happening," Lee said.
At the time of writing, Bitcoin is below USD 7,000, quoting USD 6,546 per unit, according to the CoinMarketCap price index, which represents a 4% drop in the commercialization of the last 24 hours, considering that the past Tuesday, dawn marked the 7,062 USD for Token.
For now, we just have to wait to see what reaction the market has with everything that is happening in the ecosystem.
Source: CNBC