Bitcoin’s Latest Pullback is a ‘Wake-Up Call’ for the Latecomers, says Fundstrat’s Tom Lee
Tom Lee, co-founder and managing partner of Fundstrat Global Advisors is as bullish on Bitcoin as ever and unperturbed by the latest sell-off. His year-end price target for Bitcoin price is also intact at $125,000.
“I think bitcoin is hyper-volatile. That’s the nature of it, but that’s what creates the reward for people,” said Fundstrat’s head of research in an interview on CNBC’s “TechCheck.”
“Again, even though bitcoin is in the penalty box now, I still think it could exit the year over $100,000.”
May hasn’t been really a positive month for BTC price as the leading cryptocurrency recorded a 54% drawdown from the all-time high of $65,000 in April. Since then, Bitcoin has recovered to nearly $40k only to go back under $36,500. As of writing, BTC/USD has been trading near $37,000 after bottoming at $30k last week.
“Bitcoin volatility is sort of systematic to the network itself, so I think anybody who buys bitcoin has to be aware it’s always going to be hyper-volatile. That’s the opportunity.”
The recent deep rout in the market has been primarily driven by the winding down of over-leveraged positions and short-term weak hands selling their coins to the strong hands who are long-term holders.
“This is essentially a bit of a wake-up call” for investors who got into bitcoin when it was on a big run higher, Lee said. “When you look at where the selling is taking place, it’s not from the original holders of bitcoin, but it’s a lot of new accounts.”