Tom Lee, who is a diehard Bitcoin (BTC) supporter and the head of research at Fundstrat Global Advisors a startup based in NY, sat down recently with CoinTelegraph to give insights into Bitcoin’s recent crash. Although Lee is usually called out for his overly bullish BTC calls, including his forecast for Bitcoin (BTC) ‘to eclipse the $15,000 level, the Fundstrat representative avoided issuing price predictions this time around. Lee noted that:
“Global crypto markets are down by more than 10% since October through November. While cryptocurrencies had a negative correlation, the last six weeks, has seen it flip into one of the highest correlation levels in global markets.”
According to Ethereum (ETH) World News, the last three to four months has seen the world’s five digital assets lose a collective $822 billion. This evidently instils fear in investors, in the crypto space and stock markets.
Bitcoin (BTC) Price Today – BTC / USD
Many experts have had their take on the recent crash. With a few attributing the recent crypto crash (which sent the value of all virtual currencies freefalling to under $140 billion), to others factors. While more investors are convinced that the stock market recent turbulent times has been a firm bearish catalyst. However, the fact here is that crypto markets are not cut and dried, hence, the contentious Bitcoin Cash (BCH) hard fork, along with the SEC’s crackdown on ICO-funded tokens, only accentuated the market downturn.
Some Valuable Advice To “HODLers”
CoinTelegraph, in a bid to get an inside scoop about Lee’s market outlook, asked the researcher if he had advice for “HODLers” (zealous virtual currency investors hesitant to capitulate). Strangely, seemingly contradicting his original EOY prediction and his undying bullish sentiment for BTC, Lee acknowledged that investors “have to be patient,” insisting that Fundstrat advises its customers to have little crypto exposure (probably a 1% to 2% of their portfolio). So, they are not really worrying about it on a daily basis. However, that 2% could automatically become 50% after a decade. There’s room for it to grow dramatically as time passes.
Bitcoin (BTC), Ethereum (ETH), XRP (XRP) all Have Staying Power
Lee highlighted that notable players in the space including Bitcoin, Ethereum, and XRP, have the highest survival chance particularly in stormy market conditions. When explaining why this is the case the crypto expert indicated that unless the projects mentioned here are broken, they will manage to maintain portion of their value. He believes that adoption will grow quickly and that there are institutional investors who will have opportunities to invest. Concluding that 2019 should be seen as a good for BTC.
There’s Room for Growth in Crypto Assets
At a recent instalment of Blockshow, held in Singapore, Lee spoke on-stage about Bitcoin (BTC) been bent, and not broken. Going on to add that there’s still “enviable” profitability in digital tokens, forecasting that BitMEX will make $1.2 billion by the end of 2018. According to Lee, this profit will make the startup (that stands as an infant crypto mercantile network), a more profitable exchange. Even more profitable than Nasdaq. According to him, crypto is going no were hence it is safe to say there are numerous opportunities for sustainable growth in the space.