Tom Lee: Bitcoin has withstood pressure tests amid soaring oil prices, and its value storage function is being reshaped
Fundstrat co-founder Tom Lee stated that despite the backdrop of ongoing conflict in the Middle East causing oil prices to soar, Bitcoin remained resilient over the past weekend and successfully passed a crucial pressure test.
He believes this indicates that the large-scale deleveraging in the cryptocurrency market that began in October last year has finally ended, and Bitcoin is becoming a reliable means of value storage again.
On Wednesday, during an interview with CNBC at the Future Proof conference in Miami, Lee noted that Software, Mag-7, and the cryptocurrency sector had all previously experienced bear markets, and this downward pressure has effectively suppressed market speculation.
When asked whether the recent performance of gold, which has outperformed Bitcoin amid market turmoil, means that Bitcoin has lost its safe-haven function, Lee asserted that Bitcoin's previous weakness was not due to a loss of safe-haven attributes, but rather affected by extreme market conditions.
Lee pointed out that Bitcoin experienced a crash on October 10, primarily due to the largest deleveraging event in cryptocurrency history, which caused its price movement to diverge from that of gold. While gold was rising, Bitcoin was falling.
However, he emphasized that all of this is now in the past, and the market has weathered the winter of speculation and deleveraging. He also noted that despite the sharp rise in oil prices following Iran's closure of the Strait of Hormuz, Bitcoin remained above $70,000 over the past weekend, indicating that Bitcoin's role as a value storage tool is being reshaped.
As of the time of writing, Bitcoin's trading price is approximately $70,000, having dipped 0.1% in the past 24 hours, down more than 44% from its historical high in October last year.
Additionally, on-chain analysis data provided by Binance Research shows that when Bitcoin's price traded in the range of $65,000 - $75,000, about 29,000 Bitcoins were withdrawn from exchanges.
This market behavior sharply contrasts with the previous situation when the price fell from $97,000 to $62,000, where exchange balances increased.
Overall, this indicates that current investors prefer self-custody rather than preparing to sell, and this shift clearly reflects their long-term confidence in holding Bitcoin and a continued optimistic attitude.
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