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Ethereum Classic [ETC] Summit: Bitcoin [BTC] and other cryptocurrencies will be driven by millennials says Tom Lee

Akash Anand



Ethereum Classic Summit: Bitcoin [BTC] and other cryptocurrencies will be driven by millennials says Tom Lee
Source: Unsplash

The Ethereum Classic [ETC] summit held on 12th and 13th September saw Tom Lee of Fundstrat talk about how we are almost at the end of the bearish market and also about the impact of millennials in the propagation of cryptocurrencies.

The financial analyst talked about the analysis that he had conducted on the 2008 market crash when he was still working at JP Morgan. He said that a pattern that he and his team noticed was that the bearish market always takes the prices back to the point from where the bullish surge started. He also drew extrapolations to the Great Depression, another seismic event that shook financial markets to its foundations.

Lee stated that he had put his analysis to the test in 2008, predicting that the bearish market would end by May 2009, which was accurate. He went on to say that the current market crunch felt by all the cryptocurrencies was just the market taking the value of cryptocurrencies back to its value before the massive spike in December 2017, which saw the cryptocurrency hit record highs. According to him, the current hold of Bitcoin above the $6000 mark is safe and that it is a marker for better things to come.

At the time of writing, Bitcoin [BTC] was rising at a rate of 2.16% and was trading at $6463.13. The cryptocurrency held a market cap of $111.599 billion with a 24-hour market volume of $4.323 billion.

The Co-Founder of Fundstrat stated that once the institutional investors venture into the realm of cryptocurrencies, the market will become bullish again, driving its case for mass adoption. Tom Lee then touched upon how generations drive markets citing examples of the great depression, the crash of the ‘80s, the dot-com bubble burst and finally the crash of 2008. He said that just as the ‘boomers’, a term for people born before 1980, controlled the finances up until now,  millennials will be the ones carrying the baton next.

Lee made his observations that millennials will control the cryptocurrency market after showing the audience reports that linked millennials with banks. He quoted a report that showed that a majority of the millennials do not trust the banking sector and would rather prefer a decentralized method of transaction. Another study showed that credit card usage across banks was mostly done by millennials with the usage by other user groups slowly declining. Tom also said that the lack of trust in banks is because most of the money in most countries is controlled by two or three banks at the most.

Tom Lee is one of the most famous Bitcoin bulls in the market, with his statements almost always bullish. He was also in the news recently after he had stated that Bitcoin can hit the $25000 mark before the end of this year.

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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market

Biraajmaan Tamuly



Will Bitcoin's Dominance falter for Altcoins to gain traction in the market?
Source: Pixabay

The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.

At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.

At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.

A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.

Source: Twitter

At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.

Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.

According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.

A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.

However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.

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