Tom Lee (the head of research at New York-based Fundstrat Global Advisors) in a recent interview with CoinTelegraph provided his insights about the recent crash of Bitcoin.
Lee did everything possible to blame the fall in Bitcoin price from $6000 to $5000 and now to $4000 on a catalyst. Lee contradicting the sentiment that crypto assets have had a negative effect on traditional markets said that: “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.”
Lee although has noted that “some crypto projects are probably hopeless,” he has selected cryptocurrencies like Bitcoin, Ethereum, and XRP to have the greatest chance of survival, especially when the market faces a storm.
Lee, explaining why he feels this way, said that until the projects mentioned earlier are inherently broken, they will continue to have a semblance of value. When asked if this time was right to buy Bitcoin, he explained that: “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.”
Lee, during the installment of Blockshow held recently in Singapore, made similar claims that Bitcoin is not broken, but bent and then added that the cryptosphere still has great profitability, giving an estimate that BitMEX, in fiscal 2018, could make a profit of $1.2 billion. With this gain, BitMEX will be more profitable than the exchanges in Hong Kong, even though Bitcoin was just created a decade ago.