Bitcoin Investments Still Make Sense: Fundstrat’s Tom Lee
- Tom Lee, the head of research at Fundstrat, an independent equity research firm, Bitcoin (BTC) still still a worthy investment despite the ongoing crash that was initiated in early 2022.
- Lee compared the current market crash with the crash of 2018 and stated that the former was important for the crypto industry as it has removed many of the bad actors from the space.
- The analyst also asserted the fact that this year has been one of the worst for investors and added that “nobody has made money in crypto in 2022″ in an interview with CNBC.
The crypto market crashed significantly this year as Bitcoin (BTC), the world’s oldest and leading crypto coin, has dropped more than 70% from its all-time high of $69,000 noted in the month of November last year. However, the believers in the crypto space are still bullish on the industry in the long term. One of them is Tom Lee.
As per Lee, the head of research at Fundstrat, an independent equity research firm based in New York City, Bitcoin (BTC) still still a worthy investment despite the ongoing crash that was initiated earlier this year. In a recent interview with CNBC, Lee compared the current market crash with the crash of 2018 when the leading crypto coin’s price dropped from a high of more than $19,000 to the low of $3,000 price region.
Lee believes that for Bitcoin, the 2022 market crash is not“not that different” from the 2018 market crash. He further asserted that in 2018, some of the best projects and firms were created in the crypto space which have made it big following the 2021 bull market but interestingly, many of the firms that were created in 2018 or after and enjoyed the 2021 bull run, have been ruined in 2022 as well.
The entrepreneur added that the current market crash is very important to the crypto space because it is cleaning the market by removing some of the very bad players in the space which have fooled their customers and used their funds illicitly like former multi-billion dollar crypto exchange FTX. Under the leadership of its founder and former CEO, Sam Bankman-Fried, FTX used to send client funds to its sister company Alameda Research to trade the money and multiply it via aggressive strategies.
Lee wants crypto enthusiasts to not lose hope and has advised investors to continue purchasing Bitcoin despite the implosion of FTX crypto exchange. The co-founder of Fundstrat stated that he doesn’t believe that the crypto space is dead since the industry will always be supported by those who value blockchain technology and decentralization of payment systems.
Finally, the analyst also admitted that the 2022 crash was one of the worst ever and went as far as to say that “nobody has made money in crypto in 2022″ in the interview.
Interestingly, Lee has been bullish on Bitcoin for a long time and last year, he predicted that the world’s largest cryptocurrency would reach a price of $200,000 in 2022. While this prediction failed terribly, Lee’s bullishness on BTC remains unchanged.
Bill Ackman, billionaire hedge fund manager and investor, also doubled down on his bullish prediction for crypto industry and stated that it will continue to exist despite the recent scare caused by the collapse of FTX. “Crypto is here to stay,” he noted.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
