Crypto Bull Tom Lee Believes Whales Spiked the Bitcoin Price
Wall Street-famed bitcoin bull Tom Lee believes that the recent bitcoin price breakout, where its price surged 17 percent in 30 minutes, was due to the resurgence of crypto whales. In light of that re-emergence, Lee said bitcoin is now in a bull market.
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Whales Are Back in Action
Lee, the managing partner at Fundstrat Global Advisors, broke with tradition about bitcoin’s recent bull trend on Bloomberg’s flagship markets program, ‘What’d You Miss?’
Speaking to the publication, Lee claimed that crypto OGs, often referred to in the crypto space as whales, are likely behind the recent action that sprung the bitcoin price from $4,150 USD to $5,300.
He claimed whales have started accumulating once again after remaining mostly inactive during the year-long crypto winter.
“We have had evidence that what they call OG’s, you know or the whales – the original holders of crypto, are starting to accumulate again,” said Lee.
When asked whether any hints suggested bitcoin will enter the bull market, Lee opined that there were some clues pointing to growing bullish momentum, such as growth in emerging markets and a weakened US dollar.
Crypto Market U-Turns
When asked why there has been a sudden shift in sentiment, Lee replied that bitcoin, world’s largest cryptocurrency by market cap, has closed above the 200-day moving average. This suggests the market has turned towards a bull trend.
Meanwhile, some independent analysts suggest that the recent spike in the bitcoin price is due to washing trading and algorithm funds.
Gavin Brown, a senior lecturer in Financial Economics at Manchester Metropolitan University, told Forbes that crypto exchanges are using bots to pump volume and attract real investors.
“The more liquidity an exchange appears to have, the more appealing it becomes to investors, this is simple buying psychology,” said Brown.
Lee, however, is convinced the recent rally was based on “true buying” from real investors.
Has bitcoin really entered a new bull market? Share your views in the comments section.
Images via CNBC, Upfront Ventures