Previously, Fundstrat has pointed out in its report that BTC will most likely stay in 6,000 USD region in the medium term, as it constitutes the breakeven level for cryptominers. This means that cryptominers, which use power and cryptomining hardware for transaction verification on the BTC platform, are still able to make some revenue in the event that BTC value remains over the 6,000 mark.
Lee commented that Bitcon’s stability at the said level, along with two important catalysts, are coming up for Bitcoin later this year, drastically pushing the price of the dominant digital currency in the upcoming months. So what are the catalysts Lee is talking about?
As per Lee, the two factors that will weigh in on Bitcoins price rally are the strengthening of the cryptoexchange market’s infrastructure and the fear of missing out, which currently exists among institutional financiers. Speaking of which, they would be able to enter the cryptomarket with help of those cryptoexchanges that exercise strict regulatory compliance and have a goal to function as a brokerage and a trusted custodian for major financiers. As soon as dominant financing banks enter the scene, Lee believes, that the institutions will become able to join the fray.
Nevertheless, according to Mike Novogratz, a renowned cryptoinvestor, has pointed that institutions are less likely to contribute to the cryptomarket unless BTC breaks the 8,800 and 10,000 USD resistance levels. Lee echoes this statement by claiming that the dominant cryptocurrency will need to display certain recovery in order to appeal to institutions.