Bitcoin (BTC) fell far back in recent days. After frolicking with $ 13,000 for several hours, bitcoin lost around $ 2,000 in value in the days that followed. However, the eternal bitcoin bull Thomas Lee helps us to be a little more positive by looking at the longer term.
It remains unclear where the sudden correction came from. Thomas Lee, co-founder of Fundstrat Global, thinks it is partly related to statements by the president of the US Federal Reserve Jerome Powell.
Powell spoke in front of the US Senate a few days ago. There he discussed, among other things, a scenario in which cryptocurrencies would gain much ground and be widely used. Among other things, he said that “wide acceptance of cryptocurrencies makes a federal reserve currency superfluous.”
This could have caused major concerns for regulators in the Senate. Powell did say something that is experienced as positive within the crypto community. So he said:
Almost nobody uses Bitcoin for payments, they use it more as an alternative to gold. It is a speculative potting agent, such as gold.
Whether these judgments caused the correction remains unclear. It is clear, however, that during this large decline, the 10% largest cryptocurrency wallets on cryptocurrency exchange Coinbase actually bought more bitcoins, according to a Reddit user . Allegedly, 77% of these whales bought bitcoins during the correction.
Thomas Lee also shows through the weekly chart that bitcoin is still bullish. Lee wrote in a tweet:
Important to take a step back and concentrate on the bigger picture and the long-term frameworks of #bitcoin $ BTC $ BTCUSD
– Painful decrease of $ 2k in recent days, partly due to reactions @federalreserve Powell @facebook #Libra
– Drop invisible on a weekly basis
Crypto winter is over…
– Drop invisible on weekly timeframe
— Thomas Lee (@fundstrat) July 11, 2019