According to Tom Lee, Bears aren’t accurately reading declining volume, tumbling Google search trends and prospects for the price crash. Indeed, Fundstrat’s Tom Lee believes Bitcoin is offering a strong buying opportunity for long-term investors, as he expects the largest coin to trade around $25K by the end of the year.
Bears emphasize that a decline in Bitcoin searches in Google is an indication of a lack of trader interest in digital coins. Bitcoin searches dipped almost 75% since the start of this year.
Tom Lee, on the other hand, believes that Google search trends aren’t a price performance indicator; saying “Google searches aren’t the leading indicator for Bitcoin, but instead, acts as a ‘coincident indicator,’ and therefore shouldn’t be looked to as some sort of BTC price predictor.
Trading Volume is Better than Previous Years
Tom Lee admits that Bitcoin trading volume dropped 80% from December’s high. However, he says “December was the parabolic blow-off for Bitcoin.”
He thinks such break out moments are always short-term and comparing trading volume to unusual trading activity isn’t a wise strategy for price prediction. He said, “Compared to just the second half of last year, Bitcoin volumes are up forty percent. And compared to a year ago, [over] the same time (i.e., January to June), Bitcoin volumes are up nine hundred percent.”
BTC Will not Crash Completely
Several stock market experts have been predicting a complete crash for Bitcoin and the rest of the digital currencies. They believe the lack of backing from real assets and regulatory pressures could kill cryptocurrency prices in the days to come. The huge price volatile also reduces its potential to work as a viable medium of exchange.
Tom Lee has discarded these claims. He says – “Bitcoin mining cost will work as the floor in the case of a price crash. From the Bitcoin bear market in December 2013 to January 2015, Bitcoin bottomed at its mining cost.”
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