Analyst Tom Lee: The crypto market is not speculative enough
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Answer Analyst Tom Lee: The crypto market is not speculative enough
While cryptocurrencies are often criticized as being particularly attractive to speculators, analyst Tom Lee of Fundstrat Global Advisors believes this is not the case.
In fact, Tom Lee believes that cryptocurrencies are actually not speculative enough, as he stated during the Bitcoin 2022 conference.
Fundstrat estimated that oil is traded 31 times based on speculation, which means that each barrel of oil is traded 31 times before it is actually used by refineries.
On the other hand, the same company is speculated that the cryptocurrency has a rate of 2.5 per coin.
While for the US dollar, the level of speculation on it is currently 96.
Based on these statistics, Lee concluded that the level of speculation in crypto is relatively low compared to what was mentioned.Read:British Virgin Islands unveils its own digital currency
Expect lower Bitcoin volatility:
Lee expects bitcoin’s volatility to drop dramatically in the coming years as its market capitalization continues to increase.
And draw similarities between the largest cryptocurrency and gold.
Once the yellow metal reached the $10 trillion market cap, its volatility saw a significant drop.
Currently, the market value of bitcoin is still a fraction of gold, but industry leaders such as Mike Novogratz, CEO of Galaxy Digital, believe that the leading cryptocurrency could become the leading store of value in the coming years.
Bitcoin’s $200,000 prediction still stands:
Back in February, Lee predicted that Bitcoin would reach $200,000, arguing that too much speculative capital could end up flowing into cryptocurrencies.
While last year, the head of Fundstrat predicted Bitcoin to reach $125,000, the top cryptocurrency peaked at just $69K.
It’s no surprise to Lee that his Bitcoin price predictions failed.
In 2018, he claimed that the price would reach $25,000 but what happened was a massive correction in the price of Bitcoin.Read:Bitcoin enthusiast Michael Saylor is no longer CEO of Microstrategy…Details here
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