Bitcoin (BTC) had a good Tuesday—a really good Tuesday. So good in fact that the price soared by over $600 to reach $7,386 in a one-hour period, from 17:20 (UTC) to 18:20 (UTC). And thankfully, Litecoin creator Charlie Lee had an explanation.
Bitcoin's surge past the $7,000 price level for the first time in more than a month left many people scratching their heads today.
Pundits offered various explanations for today's strong bullish move (on triple yesterday's highest volume):
- Bloomberg report that claimed that Coinbase had received approval from SEC and FINRA for its three most recent acquisitions (thereby putting it even further down the road to becoming the first SEC-regulated crypto exchange in the U.S.);
- Goldman Sachs announcing that a new more crypto-friendly CEO (David Solomon) would be taking over from current CEO Lloyd Blankfein on 1 October 2018;
- the largest asset manager in the world (BlackRock) setting up a working group to investigate different ways it could take advantage of the blockchain/crypto market;
- the International financial watchdog, the Financial Stability Board (FSB), releasing a report that found that Bitcoin and other cryptocurrencies did not pose "a material risk to the global financial stability at this time";
- billionaire Steve Cohen (the founder and managing director of Point72 Asset Management) reportedly getting into crypto by putting money into crypto hedge fund Autonomous Partners via his VC firm Cohen Private Ventures;
- a massive short squeeze;
- the Bitcoin volatility index being at abnormally low levels;
- very negative market sentiment (pretty miserable, you could say, on Fundstrat's "Bitcoin Misery Index").
Amongst all of the excitement surrounding today's price action, one man stayed calm and provided the most humorous if not the most probable explanation. Charlie Lee, the creator of Litecoin (LTC), took to Twitter to offer his two satoshis on what felt like a breath of fresh air in the smog of bearishness that the Bitcoin market has been experiencing lately:
This is what happens when my followers all buy 1 BTC. 😜https://t.co/JVL9i3xbdK— Charlie Lee [LTC⚡] (@SatoshiLite) July 17, 2018
Of course, to understand Lee's tweet, it helps to know that earlier in the day, he had sent out the following tweet:
"There will be at most 21 million bitcoins in existence. There isn't even enough BTC to go around for EVERY millionaire to own one. So before you buy any other coin (LTC included), try to own at least 1 BTC first. Once you have 1 BTC, buy all the shitcoins you want!"
But I think it might be best to leave the last word to one of the financial world's biggest Bitcoin bulls, Thomas Lee, who is a Managing Partner and the Head of Research at Fundstrat Global Advisors. Thomas Lee, who has been predicting that Bitcoin will reach around $25,000 by the end of 2018, had this to say when he appeared a short time ago on CNBC's Fast Money:
"When Bitcoin is trading at 30% below its 200-day moving average, it is a huge bull signal because one we are nearing the end of a correction, but also if you look forward six months, you are going to do pretty well owning Bitcoin."