In an interview with CNBC yesterday, Thomas Lee gave his views on the BTC vs. BCH debate. He said:
“Each have their merits, but if I was putting new money to work today, I would be a lot more interested in buying a laggard that could attract inflows rather than something that is overbought.”
This comes after Bitcoin’s bull run over the past week, with a gain of 13.58% from April 19th to 25th. It started this week at $8085 on 19th April, with the prices reaching $9500. Lee previously predicted a rally of Bitcoin to $25000 at the end of 2018.
When asked about the relation between the value of Bitcoin as an indicator for the stock market, he said:
“I’m not a huge believer in Bitcoin being a sentiment indicator for the stock market, but I can see how they’re casually connected.”
He then went on to say that the commodity trading universe views Bitcoin as “simply another instrument” which attracts leverage when it is rallying.
On adoption, he said:
“Every week that passes, there’s further progress and further clarity.”
When asked about the recent hire of former Senior VP of Seven Eight capital, Justin Schmidt, by Goldman Sachs, he said that he believed it was a sign. He then said:
“I think it’s a good thing. It’s a sign that a major investment bank believes there’s clarity and custody and money to be made to actually offer that trading option.”
He spoke about Binance as an example in the field, and about how it made $1 billion in a year.
He explained how the Bitcoin Misery Index worked. BMI is a measure of the consistency of Bitcoin, and it is calculated using two factors. The first is win ratio, which is the percentage of days when Bitcoin up forms. The second factor is something known as upside vs. downside. The upside is indicative of potential gains on days when the value rises, and the downside is indicative of potential losses on days when the value falls.
When BMI is at a misery level, i.e. below 27, it is indicative of an eventual uptick. It progressed from 27 in February to “30-ish” in March and is currently at 47. It is used regularly to determine buy signals for Bitcoin.
Twitter users responded to the interview enthusiastically.
Twitter user Rob says:
Facts. Tech speaks for itself. When professional analysis is responsibly performed, the refined/highest quality blockchains will be revealed.
Twitterati Don Sanders says:
Invest in BTC and HODL! ! BCH is not BTC.
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