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Co-founder of Fundstrat Global Advisors and chairman of BitMine Immersion Technologies, Tom Lee, stated that Bitcoin has undergone a significant test by remaining above $70,000 despite a sharp increase in oil prices due to the military conflict in the Middle East.
In an interview with CNBC at the Future Proof conference in Miami, Lee was asked whether the leading cryptocurrency had collapsed, given that gold has shown better performance in recent months even during periods of market instability. The entrepreneur acknowledged Bitcoin’s relative weakness but described it as temporary, attributing it to extreme market conditions.
According to Lee, on October 10, a massive reduction in leverage occurred in the market, marking the largest in cryptocurrency history. As a result, the correlation between Bitcoin and gold was temporarily disrupted: the price of gold increased while Bitcoin declined.
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Lee believes that the significant market downturn observed since October of last year is now behind us. He opines that the crypto market has moved past the bearish trend phase. He identified the past weekend as a turning point, during which Bitcoin’s price fluctuated between $68,000 and $72,000.
Bitcoin managed to stay above the $70,000 level even amid a sharp rise in oil prices following Iran’s closure of the Strait of Hormuz. Lee suggested that this might indicate that Bitcoin is once again being perceived by investors as a store of value.
At the time of publication, Bitcoin is trading above $69,000 with a market capitalization of approximately $1.3 trillion. Over the week, the cryptocurrency’s price has decreased by 4.3%, while the daily trading volume has fallen by 15.9% to $43.4 billion.
In addition to Bitcoin, BitMine is actively investing in Ethereum. Lee mentioned that the company aims to accumulate up to 5% of the total ETH supply. BitMine is regarded as the largest corporate holder of Ethereum, with its reserves reaching 4.47 million coins in early March.
