Cryptocurrencies Rebound 8% from Recent Low as Tom Lee Gives Post-Consensus Takeaways
Cryptocurrenc prices have begun the week on a positive note, as bullish sentiment returned to the market following an underwhelming reaction to the Consensus blockchain summit.
Crypto Prices Rally
Bitcoin and the broader altcoin universe booked solid gains Monday. The combined value of all cryptocurrencies peaked at $392 billion, according to CoinMarketCap. At time time of writing, the total market cap was worth $389.6 billion.
Prices bottomed near $361 billion on Thursday, their lowest level of the month, in the wake of a high-profile blockchain event.
The ten largest cryptocurrencies by market cap rose by at least 3% on Monday. Tron was the biggest gainer percentage-wise, adding 12.7% to $0.077. Bitcoin cash (BCH) jumped 8.1% to $1,275 following a double-digit selloff last week. Cardano and Stellar each rose more than 4%.
Bitcoin rose 3.1% to $8,493. Its share of the overall market slipped to 37.2% from a high of around 37.6% last week.
Trade volumes have been relatively thin over the past 24 hours, with turnover amounting to $16.8 billion. Crypto trade volumes averaged around $21 billion at the end of last week. During the height of the bull rally earlier this month, daily turnover exceeded $30 billion.
Tom Lee Remains Bullish on Bitcoin
The head of research at Fundstrat Global Advisors admitted recently that his Consensus price forecast missed the mark.
In an interview with CNBC that appeared Friday, Lee said his firm was “overly optimistic” about the potential for a bigger Consensus price rally but nevertheless reaffirmed his bullish outlook on bitcoin.
“While there was not a Consensus bump, our conviction on crypto-currencies strengthened during the conference,” he said. “It’s the people that you know are important to this industry coming together.”
Prior to the event, Lee had predicted significant gains for bitcoin and other crypto assets. His reasoning was rooted in the last three Consensus summits, which sparked an immediate rally for digital currency prices.
Bitcoin prices declined sharply during the blockchain conference and eventually bottomed below $8,000 – a figure not seen in a month.
In Lee’s view, the Consensus rally did not happen for three underlying reasons: regulatory uncertainty, acceptance hurdles within banks and a lack of institutional custodial tools for mass adoption.
“Bitcoin doesn’t have to go up every day to move from $8,000 to $25,000. The ten best days account for all the return of bitcoin in a year. If you didn’t own bitcoin for ten days each year, you lost 25 percent each year.”
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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