Bullish Expert Tom Lee Explains Why Bitcoin Could Not Rise!

Fundstrat Global Advisors co-founder Tom Lee, known for his bold predictions for Bitcoin (BTC), made new statements about Bitcoin. He actually answered the question that everyone was wondering about and explained why Bitcoin could not rise despite the rapidly increasing institutional demand. Starting his words by stating that US spot Bitcoin ETFs are one of the most successful ETF launches in history, Tom Lee said that ETFs have seen strong inflows recently. Stating that this means that there is unprecedented demand for Bitcoin, Lee stated that despite this demand, the BTC price did not rise and did not meet expectations. At this point, the veteran name argued that one of the reasons behind the price stagnation in Bitcoin is related to how these ETFs are purchased. Lee noted that some of the corporate entries were not made in the form of new purchases from outside, but through the so-called “in-kind” transfer method. According to Yni Lee, the inflows into ETFs were not made by purchasing new BTC, but by investors who already owned Bitcoin transferring their assets from their cold wallets to the Bitcoin ETF manager's wallet. Since these transactions do not create new buying pressure on Bitcoin, they do not push the price up. “I see this process in Bitcoin as a kind of neutral transfer. Since no new Bitcoins are being purchased and existing BTCs are being moved, it does not have a significant impact on the price. Because the price of Bitcoin follows a simple demand-supply mechanism.” *This is not investment advice. Continue Reading: Bullish Expert Tom Lee Explains Why Bitcoin Could Not Rise!