Over the past few weeks, the btc price has remained unusually stable, even as the global stock market has been lost and tampered with.
Tom Lee, founder of Fundstrat Consulting Services and one of the most famous btc whales on Wall Street, said he was surprised by the low volatility of digital currencies, especially in light of the recent swings in the stock market. He told CNBC:
"It's amazing how low the digital currency market volatility is compared to the btc market value. Especially as the total value of the currency market is $ 200 billion, compared to the global stock market, which amounts to $ 90 trillion, which has already seen a correction. So I'm surprised but I'm very pleased with this "
The role of the strengthening of the US dollar
This stability comes in the face of a significant wave of adverse winds, not only from the general trends of equity markets, but also from the strengthening of the US dollar, which affects the digital currencies as prices are still mostly denominated in US dollars.
Lee, who once predicted that btc would hit $ 25,000 this year, said btc appeared to have reached the bottom of $ 6,000, especially since the first currency had tested it several times throughout the year and remained above it at the end.
So far, the market has not seen any significant inflows of funds that are necessary to drive the calm market for nearly 10 months. But Lee believes that this could change - perhaps before the end of the year - especially with the entry of players from the larger financial sector, such as Bakkt, Fidelity and ErisX, who started offering digital currency services to institutional investors.
crypto currency prices can benefit from improved stock market conditions. One thing to be cautious of when volatile emerging markets are stabilized is oversold. Another factor that would enhance the outlook of BTC is the reversal of the strength of the dollar. With these conditions improving and the flow of institutional funds, these factors must be sufficient to stimulate the fundamentals of the digital currency market.