Tuesday, February 18, 2020

Tom Lee: Bitcoin Whales Have Started Splashing, The Start of a New Rally

Babatunde Modupe
I am a freelance writer, Poet, blogger and cryptoenthusiast that is totally interested in blockchain technology and sharing it's Information with others.

The recent surge of the cryptocurrency market after 15 months of a bear run has made many crypto enthusiasts believe the bear market has ended and its time for another bull run. Many reasons have been given as the cause of the recent surge. One of the reasons is the influx of Bitcoin whale according to Fundstrat Global Advisors’ head of research, Thomas Lee. This indicates the bull run is just starting according to Lee.

Whales Signals Bull Run

On Squawk Box, Fundstrat Global Advisors’ head of research Thomas Lee stated that bitcoin is en route to a steady accumulation phase throughout 2019. This is being triggered by an accumulation of the dominant cryptocurrency by whales that bought bitcoin very early, and sold some of their holdings when the asset hit a price of $20,000.

Lee was of the opinion that many investors in the cryptocurrency market likely kept cash on the sidelines waiting for a viable opportunity to invest Bitcoin once again. This demonstrates the confidence of investors in the long-term trend of the market according to Lee.

In his words, Lee explained that “Bitcoin had a rough 2018 and for much of 2019, it’s been steadily climbing, and from what we can gather, it’s because there have been positive things taking place. You know a lot of the old whale wallets are buying bitcoin, so it’s been slow accumulation.”

Also, Lee explained the contribution of institutions to the recent surge. Within the past four months, bitcoin has arguably seen more progress in institutionalization than in the past nine years from 2009 to 2018. Financial institutions in the likes of Fidelity, ICE, and Nasdaq have actively been strengthening the infrastructure supporting cryptocurrencies, while major conglomerates in Asia such as SBI Holdings, Samsung, and Kakao have also started to get involved in the cryptocurrency sector in meaningful ways. Lee noted that “I think finally we had a big move on April 1. It was real evidence that there was a lot of dry powder.”

Price Movement Independent Of Bitcoin

The past two months have seen crypto asset price movements independent of bitcoin, with tokens such as Theta, OmiseGO, and Decred recording gains in the range of 8 to 20 percent. This is happening for the first time after a long period.

Historically, the price of alternative cryptocurrencies usually follows the trend of Bitcoin price. Perhaps, like ShapeShift CEO, Erik Voorhees suggested, the cryptocurrency market is demonstrating signs of maturation, with the independent price movement.

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