Thomas Lee, one of Wall Street’s most reputable analysts and co-founder of Fundstrat Global Advisors, is convinced that the crypto ecosystem will soon return to the fore despite a lackluster performance in 2022.
Lee, who recently appeared in an interview with CNBC, said the downtrend currently hitting the crypto market is nothing new. The blockchain industry has experienced similar periods before, notably in 2018 when Bitcoin lost more than 70% of its value compared to its previous all-time high.
“The past year has been catastrophic for the crypto sector. Hardly anyone made money from cryptocurrencies in 2022, but that’s not much different from the 2018 pattern. If we look closely at the previous crypto winter, we can see that Bitcoin went from 17 $000 to almost $1,200, and that’s when the best projects were still in the design phase. »
Lee adds that the current market downturn is an important moment for the industry as it will clean up the sector by ejecting a number of players that are harmful to the ecosystem. He also insisted that cryptocurrencies are far from ancient history. Thomas Lee is indeed convinced that the crypto market has the necessary characteristics to remain in the forefront in the years to come.
When asked if he still recommends buying Bitcoin, Lee says yes and says he started writing at the beginning of 2017. At that time, Thomas Lee recommended investors to place at least 1 % of their funds in Bitcoin. Note that the price of Bitcoin was then below $1,000, and this stake would now represent 40% of their portfolio without rebalancing.
Thomas Lee remains bullish on Bitcoin
When Thomas Lee’s company, Fundstrat Global Advisors, released its first Bitcoin reports in 2017, the company predicted a price range between $15,000 and $50,000 by 2022.
As we have seen, this prediction has been largely confirmed, with Bitcoin trading near the $50,000 mark at the start of the year and a drop to as low as $16,000 in the last few days in consequence of the fall of FTX, which until recently was the third most important platform in the crypto ecosystem.
Back in February, Thomas Lee shared even more bullish predictions about Bitcoin, stating that the ecosystem’s premier cryptocurrency could soar to $200,000 in the next few years.
At that precise moment, he specified that the interest rates were going to make the holders of government bonds lose money in the more or less near future. Thus, many American investors will probably allocate their capital to alternative assets such as cryptocurrencies for example. As a result, it is entirely possible and reasonable according to him to anticipate a price of $200,000 for Bitcoin within a few years.
“The worst problem the crypto sector could face would be to see a flaw discovered in Bitcoin, as it is currently the most important blockchain in the ecosystem. »