Bitcoin [BTC] and cryptocurrencies are correlated to global markets causing panic selling, says Tom Lee |
Fundstrat’s Thomas Lee more commonly known as Tom Lee recently spoke about Bitcoin and the current bear market and panic selling and what it means for other cryptocurrencies.
In the interview with Cointelegraph, Tom Lee discussed the global market meltdown that is currently happening with the Dow and S&P and how cryptocurrencies like Bitcoin and XRP had a “negative correlation” with the global markets. He added that the 10% meltdown of the global market in the recent six weeks had flipped this scenario and that cryptocurrencies are now correlated with the global markets essentially leading to panic selling.
According to Lee, the panic selling would be a good time buy to Bitcoin and said that people who invested in the S&P when it crashed 200 points got good returns as compared to people who panic sold their stocks. Lee further added that although people made a short-term loss they made a big return in the long-term.
He correlated this with Bitcoin and said:
“So to me, crypto is exactly this moment that Bitcoin may have a downside in the near term but does this change the fact that it’s still the earliest days of crypto and it’s about to become an emerging asset class. Well, those are going to carry much higher prices.”
Furthermore, Lee added that one should not invest more than 2% in cryptocurrencies to avoid worrying about it all the time. He continued:
“The thing is to realize that some of the crypto projects are probably hopeless. But things like Bitcoin and Ethereum [ETH] or XRP have staying power. And these are the ones where unless you think the protocols actually completely broken you’re seeing price distortion caused by panic selling.”
Lee said that he was bullish in terms of Bitcoin for 2019 and that he was looking forward to more adoption and real-world use cases for Bitcoin. He also said that there would be an investment wave in the upcoming year for Bitcoin and other cryptocurrencies.
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