Well-known crypto analyst advises investors to keep investing in Bitcoin.
Fundstrat Global Advisors co-founder Tom Lee maintained a bullish stance on Bitcoin. His view of the world’s largest cryptocurrency comes amid growing concerns about the crypto industry, which has had quite a rough year through 2022. According to Tom Lee, Bitcoin remains an invaluable investment tool, one that may have great potential for the coming year holds.
Tom Lee Holds Hope for Bitcoin, Says Bear Market Needs Clearing
In a recent interview with CNBC, Lee admitted that the current crypto bear market is dire, to say the least. But he also noted that this is nothing new. He shared how a similar situation played out in the crypto space in 2018, which saw the birth of some of today’s industry giants. At the time, Bitcoin lost more than 70% of its all-time value. Lee said in part:
“Bitcoin went from $17,000 to something around $1,200, that was the time when some of the best projects were created.”
Moreover, the Wall Street strategist also insists that Bitcoin is very much alive. This goes completely against the increasingly popular notion that crypto as a whole may be dead and gone. But Lee is rather convinced that crypto is here to stay, and this is largely due to what it has to offer. Therefore, he continues to advise as many investors as possible to allocate some of their funds to Bitcoin.
2022 in Retrospect
Without a doubt, 2022 has not been easy on crypto. At the beginning of the year, crypto values began to fall, primarily due to macroeconomic conditions. By the middle of the year, the collapse of Terra followed, wiping more than $400 billion worth of the crypto market cap. This outlined a contagion that would later affect numerous firms, as some were eventually plunged into bankruptcy.
Furthermore, early November also saw the shocking implosion of the FTX exchange as the landscape took another turn for the worse.
But despite crypto’s poor outlook, it’s worth noting that Lee’s Fundstrat projection of Bitcoin was somewhat spot on. Back in 2017, the firm predicted that the flagship cryptocurrency would be worth between $15,000 and $50,000 by 2022. And so far, the prediction has been largely true. At the beginning of the year, Bitcoin was trading near the $50,000 mark. However, it has since fallen and is now hovering around the $16,000 mark, just as it has been doing for the past few days.
Tom Lee and his company remain quite optimistic about the long-term prospects of Bitcoin and the future of the entire crypto industry.
Mayowa is a crypto-enthusiast/writer whose conversational nature is very evident in his writing style. He strongly believes in the potential of digital assets and takes every opportunity to reiterate it. He is a reader, a researcher, a smart speaker and also a budding entrepreneur. Away from crypto, however, Mayowa’s imagined distractions include soccer or discussing world politics.