Bitcoin is not dead, and the best investment opportunities arise when the picture is not bright. This is how Tom Lee, Co-founder of Fundstrat and expert analyst of the crypto markets thinks.
Speaking at the ChainXChange conference in Las Vegas, Tom Lee expressed his bullish vision of cryptos in the long term. For him, it makes no sense to sell or adopt a bearish stance when the market is touching historic lows, as there is more likely to be a rebound.
According to Lee, the current value of Bitcoin represents an excellent buying opportunity, and it would be a mistake to miss the train:
“The question you have to ask yourselves is, ‘Now that crypto is down here, is it appropriate to be bullish or bearish?’ And I just want to absolutely point out it is a mistake to be bearish when you’re already down. This is like looking at stocks in December 2008 and deciding you wanted to become secularly bearish, even though the bear market was ending.”
Tom Lee: Bearish Sentiment Resets Bubble-ish Trends
Mr. Lee was emphatic in explaining that the correction of 2018 —although quite strong— has been healthy for the market as it has avoided the growth of the bubble by “resetting” capital. He also pointed out that it is an excellent opportunity to invest while no bullish sentiment attracts mass investors (similar to repeating what early crypto investors did).
“So I think the bear market has largely run its course in crypto, and it’s been healthy. It’s been resetting capital. It’s resetting investor expectations. But most importantly, the only time you can really make money in a big way is to buy when investors aren’t buying. That’s the real opportunity.”
Global Adoption is Just a Matter of “When”
The growth of the market cap and the use of cryptocurrencies is a generational issue, so a global adoption could be imminent in the medium term. The Millenials have a pro-technology culture that is very much influencing the lifestyle of the modern society.
He commented that in a matter of a few years the business strategies marked by this generation would decisively determine the course of traditional finance. For Lee, this growth could exceed several trillion dollars:
“First Data estimates that by 2020 Millennials will control about $7 trillion in financial assets, of which a very small percentage is allocated to digital assets. But here’s just a thought. What if 10% of that goes into native digital assets, into crypto. As you all know, the multiplier for crypto estimated by Kyle Samani at Multicoin Capital is about 20-25 times, which implies almost a $14 trillion increase in the market cap of the crypto space just from US Millennials allocating into crypto.”
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