Fundstrat’s co-founder Thomas Lee has just aired his perception on the present free fall trend maintained by Bitcoin in the market, stating that S&P 500 will need to reach a peak before the leading cryptocurrency could witness turnaround.
After a somewhat deceitful altcoin’s uptrend, the entire cryptocurrency market saw a nosedive led by Bitcoin. This happened despite the launch of the long awaited Bitcoin futures on the Intercontinental Exchange (ICE) platform Bakkt.
However, market experts have begun weighing in on the reality displayed by Bitcoin following the release of Bakkt.
Joining the likes of trader Alex Kruger and investor Tone Vays on bearish sentiments, Thomas Lee averred that the ongoing downturn of Bitcoin would force investors to risk-off selloff in equities.
The co-founder of the independent equity research firm revisited his opinion that Bitcoin has been range-bound due to the fact the equity market and macro trends have been “trendless”. Tom added that the crypto asset has not been performing very well in a ‘trendless macro’ environment.
Thomas Lee, in his previous opinion tagged ‘unpopular’, said not until S&P 500 hits a new high, Bitcoin would not rally above the year-to-date high ($13,800). While further dissecting the claim in his latest assertion, the co-founder again buttressed the point with claims that S&P 500 requires a new high before BTC can blast off.
– reinforces our ‘unpopular’ opinion bitcoin does not do well in a ‘trendless macro’ environment.
– New highs needed in S&P 500 before $BTC can blast off.
Why? We think crypto is retail and thus, risk on https://t.co/y5Yo5NepPz
— Thomas Lee (@fundstrat) September 25, 2019
Connection between Bitcoin and S&P 500 Trend
Although there are skepticism around the connection between the market trend of S&P 500 and Bitcoin, the sudden market display of Bitcoin may trigger reasons to believe in Thomas Lee’s “assertion”.
Thomas Lee previously backed his summation with Fundstrat’s Bitcoin Misery Index falling from 66 (50 now), coupled with an inference deduced from the history of Bitcoin. According to Lee, since the creation of Bitcoin, its best performance had been accompanied by 15+% growth of S&P 500.
Unpopular opinion, Bitcoin won’t make a new high until S&P 500 makes a new high.
– $BTC has been rangebound because macro trendless. Confirmed by our Bitcoin Misery Index falling from 66 (50 now)
— Thomas Lee (@fundstrat) September 12, 2019
Bitcoin Price analysis
At press time, a unit of BTC is priced $8,416.27 with 11.41% value drop against the United States Dollar in the last 24 hours.
On September 19, BTC made a rebalance to $10,200 after plummeting to $9,800, but was unable to maintain the moment, gradually drifting downwards until it reached $9,500 yesterday.
At mid Asian trading session today, Bitcoin rekt massively from $9,500 to $8,300. Though a recoil power was tested later, the cryptocurrency remains under the pressure of the market bear at press time.