Fundstrat’s Tom Lee Considers Crypto Market Volatility As Good For A Long-Term Bitcoin Approach
- Thomas Lee believes that volatility could be good for a long-term trading approach
- Bitcoin surged above $13,700 on June 26
Thomas Lee, the co-founder of Fundstrat Global Advisors suggested that Bitcoin’s (BTC) volatility is good for a long-term approach. He said that in a Tweet that he wrote on June 27 after the price increase that Bitcoin experienced during the last days.
Thomas Lee Considers Bitcoin’s Volatility Is Positive
In the recent tweet that Thomas Lee wrote, he shows that Bitcoin is a very volatile asset that can experience moments of 20% growth or corrections of similar magnitudes. Investors should have clear trading strategies and think about what they expect from the virtual currency.
reminder, Bitcoin is a hypervolatile asset.
This is great for volatility and other dedicated traders.
For most, taking a long-term view is more appropriate https://t.co/NX5FruWVEx
— Thomas Lee (@fundstrat) June 27, 2019
His comments come after Bitcoin surpassed $13,700 and later retraced to $10,800 in 24 hours. Many investors thought that the virtual currency was going to keep growing up until $20,000 but this didn’t happen and Bitcoin fell down to the aforementioned price level.
Michelle Singletary, a columnist at the Washington Post, explained that Bitcoin is a bubble and that they eventually burst. She indeed compared the digital currency to tulip bulbs, and Beanie Babies. She has also addressed FOMO in the market saying that there are many individuals that are fearing they would not be able to enter the market and earn a lot of money. However, she said that purchasing the most popular digital asset is similar to gambling.
A few days ago, Thomas Lee said that it would not be difficult for Bitcoin to move from $10,000 to $20,000. He has also considered that Bitcoin could move to $40,000 before the end of the current year. There were also other experts that said that the most popular virtual currency could surge above $100,000 in the future if the parabolic trend continues.
At the time of writing this article, Bitcoin is being traded around $10,900 and it has a market capitalization of $194 billion. The virtual currency has also fallen over 18.22% according to CoinMarketCap.