Tom Lee called the level of speculation in the cryptocurrency market insufficient

2 minutes

Bitcoin remains hyper volatile, but its turnover is inferior to other assets, which does not allow us to talk about its high “speculativeness”. This was stated by the co-founder of the analytical firm Fundstrat Tom Lee, writes Financial News.

This is how the top manager reacted to the thesis that that many investors are in no hurry to add digital assets. Skeptics cite a lack of regulatory certainty and a high degree of market speculation, although they are showing significant interest, he added.

Despite industry definition of the “Wild West”, the volatility of the MVIS CryptoCompare Digital Assets 100 Index, which tracks the top 100 largest crypto assets, does not exceed that of any other index more than twice.

According to Lee’s calculations, the turnover of bitcoins is 2:1, while that of the US dollar is 96:1, and that of a barrel of oil is 31:1.

For the co-founder of Fundstrat, bitcoin is like gold in the early days of its exchange trading. The precious metal also experienced strong price fluctuations in the 1970s until the market capitalization reached $10 trillion five or six years later.

“Today, when […] the penetration rate is so low, you can expect bitcoin to be hyper volatile. But as 9 out of 10 households invest in the first cryptocurrency, its price fluctuations will weaken, ”the specialist explained.

Recall that in February, Lee announced his expectations of a “huge” influx of speculative capital into cryptocurrency.

The firm FSInsight, previously founded by him, predicted that the first cryptocurrency will reach $200,000 in the second half of 2022.

Subscribe to ForkLog news on Telegram: ForkLog Feed – the entire news feed, ForkLog – the most important news, infographics and opinions


Leave a Reply

Your email address will not be published.