Michael Lee, the founder of wealth investment management firm Michael Lee Strategy, has said despite Bitcoin’s recent price correction, the asset still has a bright future.
Speaking to Fox Business, Lee suggested that Bitcoin is a momentum asset class. This is after the number one ranked cryptocurrency continued with its short-term rally.
By press time, Bitcoin was trading at $38,629, gaining 24% over the last seven days. According to Lee, Bitcoin’s growth within a week is proof enough the asset has the best days ahead.
“I think it’s hard to explain some of these moves, but it’s a very much a momentum asset class. So as soon as you get a little bit of momentum to the upside, the follow-on trades just keep coming and coming and coming. And then all of a sudden you go from 29,000 to almost 40,000 in the span of a little over a week,” said Lee.
Reduced regulatory crackdown
Although Bitcoin has faced a regulatory crackdown from various jurisdictions in recent weeks, Lee noted that he does not foresee any restrictive policy, especially from the Federal Reserve. Lee noted that the asset would hit new all-time highs in the next few months in the absence of projected reduced restrictive policy changes.
Bitcoin’s momentum began over the weekend, building on the gains inspired by the B-Word conference. On Saturday, the digital currency moved past the 50-day moving average for the first time in May.
The renewed price movement emerged after Tesla CEO Elon Musk stated that the electric vehicle manufacturer might accept the crypto as a payment method once again. In May, Tesla suspended Bitcoin payments citing the carbon footprint concerns.
Speaking at the conference, Musk noted that he intends to see Bitcoin succeed. Musk added that he is currently studying the Bitcoin environmental impact.
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