Tom Lee of Fundstrat believes Bitcoin demonstrated resilience after rising over the weekend while oil prices surged amid tensions in the Middle East.
Lee explained that the price movement suggests the large scale deleveraging that took place last October has largely cleared from the market. In his view, this development is allowing Bitcoin to regain credibility as a store of value.
Speculation Has Largely Been Removed
Lee shared his comments during a discussion with Scott Wapner of CNBC at the Future Proof conference in Miami. He argued that several markets have already experienced their bear cycles.
According to him, sectors such as software stocks, the group known as the Magnificent Seven, and the cryptocurrency market have already undergone significant corrections that removed much of the earlier speculation.
Lee added that he expects financial markets to end March with gains and suggested that the S&P 500 could reach around 5,300 later in the year. At the same time, he warned that markets could eventually face a decline of about 20 percent, which might occur when investors stop reacting positively to favorable news.
Bitcoin’s Recovery as a Store of Value
When asked whether Bitcoin had failed as a safe haven asset since Gold outperformed during recent market stress, Lee acknowledged that Bitcoin had struggled earlier but said the weakness was linked to extreme market conditions.
He pointed to October 10 as a turning point when the cryptocurrency experienced what he described as the largest deleveraging event in the history of the digital asset market. During that period, gold prices were rising while Bitcoin moved lower.
Lee believes that phase has now passed. He said the market has gone through a prolonged period in which much of the leverage and speculation was removed.
The recent weekend rally strengthened his view. Bitcoin managed to remain stable even as oil prices climbed sharply after Iran moved to close the Strait of Hormuz. According to Lee, this reaction indicates that Bitcoin is once again gaining attention as a store of value asset.
Current Market Position
At the time of writing, Bitcoin is trading close to 70,000 dollars. The cryptocurrency has declined about 0.2 percent over the past 24 hours after briefly reaching roughly 71,600 dollars, according to data from CoinGecko.
Over the past week, Bitcoin has gained around 3 percent and has risen nearly 7 percent over the last two weeks. Despite these gains, it remains down about 12 percent compared with the previous year and is still more than 44 percent below its October 2025 all time high.
On chain data presents a mixed outlook. Research from Binance Research indicates that approximately 29,000 Bitcoin have been withdrawn from exchanges while the price has moved within the range of 65,000 to 75,000 dollars. This pattern contrasts with an earlier decline from 92,000 to 62,000 dollars when exchange balances were increasing.#crypto #cryptonews https://t.me/coinsignalpublic https://coinsignals.net
