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Tom Lee Chalks Up Recent Bitcoin Crash To “Macro Meltdown”
Doing his best to attribute Bitcoin’s foray under $6,000, then $5,000, then $4,000 to a catalyst, Tom Lee, contradicting sentiment that crypto assets act against traditional markets, noted:
Global markets are down more than 10% between October and November. While crypto actually had a negative correlation, in the last six weeks, it has flipped to one of the highest levels of correlation to global markets. So I think that the macro meltdown has actually finally hit the crypto, which further contributed to the essential panic selling.
Advice To “HODLers”
Surprisingly, seemingly contradicting his EOY price prediction and undying bullish sentiment for Bitcoin, Lee noted that investors “need to be patient,” adding that Fundstrat itself advises its clients to have small exposure to crypto — a mere 1% to 2% of their investment portfolio. Giving this statement some rationale, he explained:
So, number one, they’re not worrying about it every day. But also that’s 2% could become 50% in a decade it can grow dramatically.
Bitcoin, Ethereum, XRP Have Staying Power
Explaining why this is the case, Tom Lee noted that unless the aforementioned projects (Bitcoin, Ethereum, XRP) are inherently broken, they are likely to maintain a semblance of value. So, when asked if now is an optimal time to buy into Bitcoin, the Fundstrat researcher explained:
So to me, crypto is exactly this moment that Bitcoin may have a downside in the near-term. But this doesn’t change the fact that it’s still the earliest days of crypto, and it’s about to become an emerging asset class. So, [these factors] are going to carry much higher prices… adoption is going to grow. and that we have institutional investors that will have opportunities to invest. So I think 2019 is a great year for Bitcoin.
Crypto Assets Have Room To Grow
Speaking on-stage at the most recent installment of Blockshow, held in Singapore, Lee made similar claims, noting that Bitcoin is “bent, not broken,” before adding that there is still “enviable” profitability in the cryptosphere, estimating that BitMEX is poised to make $1.2 billion in fiscal 2018.
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Source: EthereumWorldNews.com
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ICN Aggregator: Tom Lee: Bitcoin, XRP, Ether Have Staying Power — BTC To Do “Very Well” In 2019