Tom Lee Believes Bitcoin Is Still Too Small For Institution Interest

Tom Lee believes that Bitcoin maintained to stay strong on the $8,000 position for the past few days and it seems that it is going to consolidate here. In the Bitcoin price news, we take a closer look at why Lee has this opinion.

The Bakkt futures launch which happened a few weeks ago had a massively underwhelming effect on the price of bitcoin and it even suggested that bitcoin are still too small for institutional interest. Bitcoin topped out at $8,230 just a few hours ago according to the charts on Tradingview.com. There has been a slight movement away from the $8K zone since the massive dump a few days ago. The intraday dip reached $8,110 but BTC started another consolidation phase at this price zone. The death cross is slowly approaching on the daily chart as the three-month downtrend continued with a few signs of reversal. The crypto candle is not yet to close by as the Crypto Fibonacci analyst pointed out:

 “This candle is still not closed yet, but it looks like a Doji will form here (indecision). It is forming in a very interesting area. At the 50 ema and the lower Bollinger Band. Next week should be interesting.”

However, with the very low volumes, the bitcoin price will likely continue to be range-bound for a longer time. The total crypto market capitalization is standing around $220 billion which is about where it was last time which is a week ago following the seven days of sideways trading for most of the cryptocurrencies. The lack of interest from the major institutional players is one of the reasons why Tom Lee believes the bitcoin price has not rallied further. The shaky market conditions are mainly there because of the same money being pumped in and dumped out as short term traders.

The crypto bull and managing partner at Fundstrat Global Advisor, Tom Lee explained to the media what his views on the lack of interest from the institution are,  noted in the previous blockchain news:

 “There’s a mechanical issue for crypto in terms of infrastructure that’s needed but there’s probably also the size of the market issue. If you’re asking someone to allocate 1% to bitcoin — that’s like triple the market weighting like you’re asking someone to make a massive bet even though it’s 1% of their assets because bitcoin is that small.”