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Top Wall Street strategist Thomas Lee, who is also the co-founder of Fundstrat Global Advisors, believes that crypto will re-emerge in 2022 despite a weak performance.
Lee, who appeared in a recent interview with CNBC, said that the current crypto bear market is nothing new. He noted that the crypto industry experienced a similar slump in 2018 when bitcoin lost more than 70% of its value from its all-time high.
“It’s been a terrible year for crypto. No one made money in crypto in 2022,” he said. “But it’s not that different from 2018. If we look at that crypto winter, when bitcoin went from $17,000 to almost $1,200, it was a time when some of the best projects were built.”
Lee said the current market downturn is “a pivotal moment” for the industry as it is weeding out a lot of bad players. He also emphasized that he does not think crypto is dead. Instead, he is convinced that crypto will have staying power because of what it offers.
When asked if he still recommends buying bitcoin, Lee said yes. “We first wrote about bitcoin in 2017, and we recommended that people put 1% of their funds into bitcoin. At the time, bitcoin was less than $1,000. That holding today is 40% of their portfolio without rebalancing. K will be
Lee is bullish on bitcoin
When Lee’s Fundstrat published its first report on bitcoin in 2017, the company estimated that the flagship cryptocurrency could be worth between $15,000 and $50,000 by 2022.
The prediction has turned out to be largely correct, with bitcoin trading near $50,000 at the start of the year and falling to around $16,000 in the past few days amid the collapse of FTX, once the world’s third largest cryptocurrency exchange.
Back in February, Lee shared an even more bullish prediction about bitcoin, stating that the leading cryptocurrency could soar to $200K in the following years.
at that time, he argued Bond owners will lose money in the future because of interest rates. In this way, many US investors will allocate their capital to alternative assets such as cryptocurrencies, and this could increase the price of bitcoin to $200,000.
“The biggest downside to cryptocurrencies will be the vulnerability exposed in bitcoin, as it is the most important blockchain and the most value stored in it,” he said.
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