Tom Lee: Bitcoin Price Recovering from Winklevoss ETF Rejection a Positive Sign
Fundstrat founder Thomas Lee, better known to the cryptocurrency community as Tom Lee, has expressed his enthusiasm towards the swift recovery of the bitcoin price from its drop in the past week.
Recovery From Winklevoss Bitcoin ETF Rejection is Important
On July 27, upon the rejection of the Winklevoss bitcoin ETF by the U.S. Securities and Exchange Commission (SEC), the price of BTC fell from $8,300 to $7,800, by more than six percent in a three-hour period.
Within 12 hours after its drop, the bitcoin price recovered from $7,800 to $8,250 in a much shorter period. The surge in volume and demand for bitcoin on July 28 caused the price of BTC to increase by 5 percent within 50 minutes.
Lee stated that the ability of bitcoin to shrug off a major event and recover in price in a swift manner is a sign of a positive change in the cryptocurrency market. Initially, investors in the cryptocurrency market reacted prematurely to the disapproval of the Winklevoss bitcoin ETF, which is not the ETF the community has anticipated since mid-2018.
“It’s a sign of a positive change in crypto that bitcoin has essentially shrugged off the Winklevoss ETF rejection. If this took place in April-June (more bearish period), the crypto market would have seen a sizable sell-off. In short, affirming why technicals improving,” Lee said.