Fundstrat's Tom Lee, a well-respected cryptocurrency analyst, argues that Bitcoin has held key levels of support despite significant regulatory challenges, in a recent interview on CNBC.
This year, according to Lee, Bitcoin has managed to maintain strong performance, demonstrating resilience even amid some of the industry's most stringent regulatory actions.
The price of the largest cryptocurrency is up 83.05% over the past 24 hours. Bitcoin is trading at $30,543 on the Bitstamp exchange.
Bitcoin, which has seen both new entrants and exits from major players in the sector this year, remains a compelling investment, Lee argues. He points out that Bitcoin's technical support and the entry of traditional, reputable firms such as BlackRock and Citadel have provided the cryptocurrency with a stronger foundation and increased credibility. Lee noted that Bitcoin tends to perform well in "risk-on" environments, citing its historical correlation with strong years for the S&P and Nasdaq indices.Despite many detractors who argue that Bitcoin lacks inherent value, Lee defends the cryptocurrency, highlighting its basis in trust and network value. Comparing it to other financial systems and assets like the dollar or tech stock prices, he contends that these are all underpinned by the same principles that uphold Bitcoin. He claims that Bitcoin's ability to hold its levels demonstrates its resilience and potential for growth.
In the interview, Lee acknowledged that Bitcoin and gold often attract different types of investors, with Bitcoin appealing more to the younger, millennial demographic. However, he sees this as an advantage for the future of Bitcoin, stating that as wealth transfers to younger generations over the next 20 years, the cryptocurrency is likely to continue growing in popularity and value. "Gold is sort of a Baby Boomer thing and Bitcoin is more Millennials," said Lee, adding that there are currently only 100 million global Bitcoin holders.