BlockShow Asia is currently underway, and today saw Fundstrat Global Advisors’ co-founder Tom Lee make an appearance. Moreover, Lee held a speech in which he argued that the current bearish cryptocurrency market sentiment is good for crypto.
Bear market a golden time for cryptocurrency
First of all, Lee outlined the three main reasons he regards as the main reasons behind the recent market slump. First of all, he mentioned Bitcoin Cash’s recent hard fork, which Lee noted diverted ”a lot of hash power”.
In addition to this, Lee also pointed to the recent regulatory actions of the US Securities and Exchange Commission as being detrimental to the industry. Specifically, this relates to the SEC’s decision to force ICOs to return fund to investors.
Finally, Lee also noted the current ”terrible” conditions of global markets in general as spilling over into the cryptocurrency market.
These comments notwithstanding, Lee said that his positive outlook on cryptocurrencies is virtually unchanged. In fact, Lee even went so far as to say that the current price levels constitute somewhat of a ”golden time” to be in crypto.
”[We] have a price correction taking place, which has caused the price to fall below its 200-day, but if you’ve got time, it will arise. It will not happen within three months, or one year, but in two to three years, and this is the golden time to be in crypto. As soon as Bitcoin crosses its 200-day, we know there will be a flood of money incoming,” Lee noted.
Bitcoin not broken
Lee stated that he could, however, accept that people could consider Bitcoin as being ”bent” by the recent market slide. Nevertheless, he highlighted that if Bitcoin is indeed bent, it should be noted that it is not broken.
He also pointed to how a multitude of cryptocurrency exchanges are still exceptionally lucrative and profitable. Lee then went on to suggest that if the cryptocurrency industry would be in trouble, this would first affect exchanges.
Moreover, Lee also said that technology companies are increasingly looking towards the banking industry due to its huge margins. He indicated that this is something that could make cryptocurrencies more relevant than ever. In addition to this, Lee also noted that an upcoming generational shift – millennials – is distrustful of traditional banks.
”So, is it any wonder technology companies are eyeing banking services as the next area of disruption? Facebook, if they start to do banking-like services, could increase their revenues by more than a hundred times,” Lee noted.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.