Tanya Abrosimova
Independent Analyst
- Former Wall Street strategist compare Bitcoin to the equity market.
- He supports the idea of a long-term bullish trend for cryptos.
Fundstrat's founder and famous crypto proponent Tom Lee comes out again to calm the crowd and tell the people that bulls will have the upper hand after all. He maintains the year-end target of $25,000 for Bitcoin, despite that the coin has been moving within the bearish trend since the middle of December 2017.
Lee, former chief equity strategist at JPMorgan Chase & Co, draws parallels with equity markets, where investors need to be patient to live through the bearish trend and stay on positive balance in the end.
On average, Bitcoin, just as the top equity indices, see most of its gains only during a few days each year, Lee agues. As a result, it stands to reason to buy and hold mot to miss out this handful of winning days.
"Long-time holders are worried because they have big gains and they're worried about falling prices. But bitcoin is a great store value. It works really well. It's kind of boring, because it's not the latest and most exciting project. But it also is one of the most liquid ways to get exposure to crypto," Lee said in the interview with CNBC on Wednesday.
His position supports the HODL mantra, repeated by Bitcoin purists during every crash. Earlier this month Lee predicted that Bitcoin price would reach $91,000 by the end of 2020, despite bearish factors that sent Bitcoin and other digital assets to the lowest levels of the year.
Bitcoin is currently trading at $7,500 with the downside bias. Ethereum is at $412.00 down more than 7% on the day. Ripple holds at $0.5400.
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