Bitcoin bull Tom Lee is still optimistic about bitcoin despite recent havoc in the crypto market, sell-off, and restrictions on digital assets in China. He is sure that after this correction and the artificially created panic which is currently dominating the market, BTC will soar up to $125,000. "Bitcoin volatility is sort of systematic to the network itself, so I think anybody who buys bitcoin has to be aware it's always going to be hyper-volatile. That's the opportunity," Lee said.
May was a very unsuccessful month for bitcoin as there was a drop in the digital asset by 54% down from the record highs logged in April. Bitcoin's dominance in the market has weakened significantly.
Today, after Musk's statement that they had a meeting with miners in the US, which was established by one of the main supporters of bitcoin, Michael Saylor, the digital asset advanced and reached almost $40,000.
According to Lee, bitcoin will always be hyper-volatile, but it is also an incredible opportunity to make money when pseudo-holders are off the market. There are great opportunities behind every risk. The last market crash was associated with the closing of positions with excessive leverage and speculators who sold off their bitcoins during the panic to stronger market players enriched them.
However, due to the bears that still have an impact on the crypto market, it is still difficult for bitcoin to break above the $40,000 milestone and consolidate at this level. Many long-term holders lock in profits during this period, and short-term holders sell off their coins.
"This is essentially a bit of a wake-up call" for investors who got into bitcoin when it was on a big run higher, Lee said. "When you look at where the selling is taking place, it's not from the original holders of bitcoin, but it's a lot of new accounts."
The material has been provided by InstaForex Company - www.instaforex.com