According to Tom Lee, analyst and co-founder of Fundstrat Global Advisors, the bearish trend that has been going on for almost a year is the “golden time” for cryptocurrency market participants. Reported by the Cointelegraph .
Speaking at the BlockShow Asia 2018 conference, Lee named three main reasons that led to a market crash:
- controversial hardfork Bitcoin Cash (BSH)
- tough measures by the US Securities and Exchange Commission in relation to the primary coin offerings, including demands to return funds to ICO investors
- “Terrible” state of affairs in global markets, which fell by about 10% during October-November.
Despite all these factors, the analyst is still optimistic. Describing the current market situation, Lee said the following:
“Now there is a correction, as a result of which the [bitcoin] price has fallen below the 200-day moving average [EMA]. However, after a while it will grow. It will not happen in three months or in a year, but it will happen in two to three years. And now is the golden time for those in the cryptoindustry. ”
Tom Lee is convinced that the cryptocurrency will become a full-fledged and generally recognized class of assets.
“Investment returns can exceed seven percent only if you buy on a bear market. Bitcoin may have recessions in the short term. However, this does not negate the fact that we are still at a very early stage in the development of cryptocurrency, ” he added.
During his speech at BlockShow, Lee also noted that the cryptoindustry now has only 50 million active wallets. At the same time, the total number of Visa and MasterCard accounts is 4.6 billion. Taking into account the potential network effect, the analyst does not exclude that in ten years the price of Bitcoin may reach $ 10 million.
Finally, Tom Lee said that BTC will show itself “from the good side” next year, despite the fact that the next three months are fraught with a possible price drop. Analyst forecast is based on the fact that institutional investors and large corporations, including Microsoft and Starbucks, are showing interest in digital currencies.
Recall recently Tom Lee said that the recent sharp decline in the price of Bitcoin is inherent only in the short term.
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