Popular Crypto Advocate Tom Lee Says ICE’s Bakkt Will Boost Bitcoin Price
Tom Lee Says Bitcoin Will be Boosted With ICE’s Bakkt Platform
The famous virtual currency Bitcoin (BTC) has been in a downtrend since the beginning of the current year. After reaching $20,000 dollars in December 2017, Bitcoin is now being traded around $6,600 dollars and enthusiasts are waiting for an event that would trigger a new bull run.
Tom Lee, head of research at Fundstrat Global, talked with Bloomberg about possible catalysts that could help Bitcoin price to grow and reach new levels. He explained that the $6,000 dollars mark that Bitcoin tested on several occasions was more important than previously expected. In the last months, Bitcoin was traded close to this price level around 7 times.
This price has been considered as an important point since it was the limit for miners to be profitable. Additionally, he said that it is an important mark because it is a great sign for investors for a reverse in prices. In the future, certain catalysts will help the price of Bitcoin and other virtual currencies to grow. That includes the launch of the ICE backed Bakkt trading platform.
The Bakkt platform would allow institutional and wealthy investors to enter the market for the first time. According to some experts, this could help trigger a new bull run in the market. As Mike Novogratz said, the next bull market will be driven by institutions and not retail investors.
In November 2018, the Bakkt platform could start its operations allowing virtual currencies such as Bitcoin and Ether to start to grow again.
The company said about it:
“With our solution, the buying and selling of bitcoin is fully collateralized or pre-funded. Our new daily bitcoin. Our new daily bitcoin contract will not be traded on margin, use leverage or serve to create a paper claim on a real asset.”
Tom Lee explained that the general public has a different view of the current market situation. In general, investors are panicking, but there is no reason for it. Additionally, he explained that retail investors are afraid of losing the market trend when it starts to grow.
He then talked about marijuana stocks and how they are growing almost exponentially in the last weeks. For him, volatility in the market is a good thing since it allows investors to place their investments in a risky environment.
At the same time, he mentioned that if investors want to enter the market, they should do it in an asset with regulatory clarity such as Bitcoin. There are different countries that are starting to implement different regulations around some crypto assets including Bitcoin.