The co-founder of Fundstrat Global Advisors believes that the current bearish trend on the cryptocurrency market provides crypto investors with tremendous opportunities. He shared this opinion while speaking at BlockShow Asia 2018 conference on November 28.
Tom Lee mentioned three main reasons behind the recent cryptocurrency market collapse: the hashwar triggered by the recent hard fork of Bitcoin Cash blockchain, harsh regulatory measures taken against ICOs by the U.S. Securities and Exchange Commission (SEC), and the “terrible” condition of global market, with its main indexes dropping by approximately 10% in the course of last two months.
As a crypto investor well-renowned for his “bullish” attitude to bitcoin, Lee did not give up on his positive view on the future of cryptocurrencies, however.
“[We] have a price correction taking place, which has caused the price to fall even below its 200-day [a popular technical indicator used by investors to analyze price trends], but if you’ve got time, it will arise. It will not happen within three months, or one year, but in two to three years, and this is the golden time to be in crypto. As soon as Bitcoin crosses its 200-day, we know there will be a flood of money coming.”
“The only time the return is better than 7 percent is when you buy at a bear market […] Bitcoin may have downsides in the near term, but this doesn’t change the fact we are still in the earliest days of crypto, and it’s about to become an emerging asset class,” – Lee explained.
Tom Lee noted that cryptocurrency circulation and trading is now relying on 50 million active crypto wallets, as compared to 2.27 million PayPal accounts and 4.6 billion Visa and MasterCard accounts. He also betted that BTC price could reach $10 million over the next 10 years.
The co-founder of Fundstrat believes that bitcoin will do “very well” next year, though the price decline is likely to last for another three months or so. He based his stance on the increasing level of crypto adoption by major corporations, such as Microsoft and Starbucks, and institutional investors.
It is also worth noting that, back in February 2018, Tom Lee was predicting that bitcoin price would reach $20 000 once again by June 2018 and rise to $25 000 by the end of the year, but neither of these optimistic projections proved to be true.
Last month, venture capital billionaire Tim Draper, who is another well-known bitcoin bull, reiterated his prediction about BTC price reaching $250 000 in next four years. The billionaire believes that these are not just fiat currencies that can be transformed through the use of cryptocurrencies and blockchain, but the entire systems of state and business management.