Bitcoin, the largest cryptocurrency by market capitalization is beginning to display its usual but quite favorable volatility. Some hours ago, BTC broke out of its comfort zone $8,200 price region to overcome $8,500 resistance level.
Despite this significant performance, Thomas Lee, the co-founder at Fundsrat Global remains steadfast that Bitcoin’s success still lies in the notable price growth of S&P 500.
Thomas Lee Expects S&P Upside Trend to Aid Bitcoin
Thomas Lee is a popular Bitcoin maximalist. He’s usual to the prediction about the digital currency breaking above its ever-challenging all-time price high of $20,000. He recently reiterated such despite the reluctant display showcased by BTC.
Quoting Mike Dudas of The Block in a recent tweet, Lee stressed on the fact that the United States’ envisaged recession, which many expected to aid Bitcoin’s significant growth is not forthcoming. He however pointed out his usual fact about S&P 500 connection with the growth of the digital currency.
Lee stressed that S&P 500 is expected to experience price break out soon, and this would precede Bitcoin’s rally on the upside trend.
He said, “We expect S&P 500 to break to the upside soon and this would enable Bitcoin to breakout as well. – while many expect a recession, US has been stubbornly resistant. – BTC oversold and sentiment cooled off (good thing)”.
Importance of Bitcoin to Cryptocurrency Market
Since Bitcoin embarked on its long-term downward trend that brought its price below expectation, the digital currency has not experienced price increase like the kind it’s presently experiencing. Some crypto analysts had envisaged the possibility of Bitcoin dropping dipper to $6,000 price region before any trustworthy price resurgence can be expected.
Despite the recent performance of Bitcoin, a part of cryptocurrency pundits still believe in the steady growth of BTC rather than a significant and swift uptrend rally that may not last longer.
The good health of BTC is obviously necessary for the growth of the whole cryptocurrency market. However, top digital currencies such as Ethereum (ETH), Ripple’s XRP and others have lately showcased their ability to experience outstanding price growth without subjecting to the sovereignty of Bitcoin.
The fact still remains that currencies need Bitcoin to be in good shape. Regarding this, whenever BTC experiences long-term price retardation like this recent one, it always pave way for tons of backlashes from critics and pessimists of the use cases of cryptocurrency.
So this confirms the necessity of Bitcoin maintaining its trend. BTC is showcasing such again, and there are growing expectations of sustaining this uptrend without faltering. At the time of writing, BTC is trading at $8,591.14, with 4.21% price increase on 24H basis.