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Tom Lee signs the recent Bitcoin crack at "Macro Meltdown"
Diehard Bitcoin bull Tom Lee, head of research at Fundstrat Global Advisors, based in New York, recently interviewed CoinTelegraph to provide his insights on the recent Bitcoin accident (BTC). Although Lee is often criticized for his excessively bullish phone calls, such as his BTC forecast to eclipse $ 15,000, the Fundstrat representative avoided issuing price forecasts in this interview.
Doing his best to attribute the incursion of Bitcoin under $ 6,000, then $ 5,000, then $ 4,000 to a catalyst, Lee, contradicting the feeling that cryptographic assets are acting against traditional markets, he noted:
Global markets are down more than 10% between October and November. While cryptography has actually had a negative correlation, in the last six weeks, it has turned into one of the highest levels of correlation to global markets. So I think the macro merger has finally reached the crypt, which has further contributed to the sale of essential panic.
As reported by Ethereum World News, in the last three or four months alone, the five largest technology stocks in the world have lost $ 822 billion, evidently infusing loads of fear into the heart of investors, both in cryptic and equity markets.
While others have attributed the most recent crash of crypto, which sent the aggregate value of all cryptocurrencies in freefall to $ 140 billion, to other factors, more investors are becoming convinced that the tumultuous stock market has been a strong bearish catalyst. However, the fact is that the markets are not cut and dried, so the controversial fork of BItcoin Cash, combined with the recent repression by the SEC on the tokens financed by ICO, has probably only accentuated the crisis.
Tips for "HODLERS"
CoinTelegraph, with the goal of obtaining an internal scoop on the market prospects of Lee, asked the well-known market researcher, former JP Morgan, if he had any advice to be given to "HODLers" – zealous cryptocurrent investors who are hesitant in the chapter.
Surprisingly, apparently in contradiction with his prediction of EOY prices and the confident sentiment for Bitcoin, Lee noted that investors "must be patient", adding that Fundstrat itself advises its clients to have a small exposure to the crypto – a simple 1 % to 2% of their portfolio investment. Giving this statement a little logic, he explained:
So, number one, they do not worry about it every day. But even this is 2% could become 50% in a decade that can grow dramatically.
Bitcoin, Ethereum, XRP always have power
Although Lee continued to note that "some cryptography projects are probably hopeless", Fundstrat's crypts savant explained that prominent players, such as Bitcoin, Ethereum and XRP, probably have the best chance of surviving, especially under conditions stormy market.
Explaining why this is the case, Lee noted that unless the aforementioned projects are intrinsically broken, they are likely to maintain a semblance of value. So, when asked if it is now the optimal time to buy in Bitcoin, the Fundstrat researcher explained:
So for me, crypto is exactly this moment when Bitcoin could have a downside in the short term. But this does not change the fact that they are still the first days of cryptography, and is about to become an emerging asset class. So, [these factors] they will bring much higher prices … adoption is about to grow. and that we have institutional investors who will have the opportunity to invest. So I think 2019 is a fantastic year for Bitcoin.
Cryptographic resources have room to grow
Speaking on the stage of Blockshow's last episode, held in Singapore, Lee made similar statements, noting that Bitcoin is "bent, not broken", before adding that there is still an "enviable" profitability in the cryptosphere , estimating that BitMEX is ready to make $ 1.2 billion in fiscal 2018.
This profit alone would make BitMEX, an encrypted merchant platform, more profitable than Hong Kong Exchanges & Clearing and Nasdaq, even if Bitcoin is only a ten-year-old creation. As they say, "the proof in the pudding". So, crypto is not going anywhere, and, more importantly, has plenty of legroom and large shoes to fill.
Title Image Courtesy of tian kuan on Unsplash
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