Tom Lee, the senior market analyst at the research and market strategy firm Fundstrat Global Advisors is bullish on Bitcoin. Specifically, Lee has recently said that Bitcoin provides the only truly safe haven. These comes as concerns over global recession are mounting.
Tom Lee says turmoil will drive investors towards Bitcoin
This news came during a fresh interview with Fox Business. In the interview, Lee notes that he is certain that investors will flock to Bitcoin in times of macroeconomic uncertainty, and answers “whether Bitcoin is a genuine safe haven”:
“Yes. You can see it in markets. Where there’s turmoil, the local Bitcoin prices tend to surge and trade at a premium, because people are trying to find ways to protect their money. So yes.”
This comes as a recent note predicts that worsening macroeconomic conditions will create a “perfect storm” for Bitcoin. It looks as if Tom Lee’s most recent comments line up with these.
Lee went on to add that Bitcoin has “done very well this year”. This serves as a reminder that the premier cryptocurrency has increased substantially from its December price of around $3,000 to its current trading price of around $10,000.
All-time high Bitcoin price by end of 2019?
What’s more, Lee also said that Bitcoin and crypto is arguably unique in how it is “really uncorrelated to equities, to bonds, so it’s a good diversification hedge”.
Nevertheless, Bitcoin has recently taken a beating in the markets, falling from around $12,000 to less than $10,000. This does not faze Lee, however. The Fundstrat analyst notes that Bitcoin is currently “just resting”. As such, the cryptocurrency can increase its price substantially before the end of 2019.
“I think it’s going to be much higher by the end of the year, and potentially at a new all-time high. I think anyone who wants to have a 2% or 1% allocation to Bitcoin as a hedge against a lot of things that could go wrong — it’s a smart bet.”
As such, it would appear that Tom Lee is certain that Bitcoin can not only rebound to its highest levels, but also surpass these. Furthermore, the looming macroeconomic downturn could certainly drive even more investors towards cryptocurrencies. Specifically, diversifying and hedging against falling asset prices is essential for institutional investors.
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.