According to Tom Lee's analyst and co-founder of Fundstrat Global Advisors, the bearish trend, which lasts for almost a year, is a "golden time" for market participants to cry. Cointelegraph reports.
Speaking at BlockShow Asia 2018, Lee described three main reasons that led to the collapse of the market:
- disputed hardcore Bitcoin Cash (BSH)
- strict measures of the US Securities and Exchange Commission regarding primary coin offers, including requirements to return funds to ICO investors
- "Terrible" situation in global markets, which during the October-November fell by about 10%.
Notwithstanding all these factors, the analyst is still optimistic. Describing the current market situation, Li said the following:
"Now there is a correction, which resulted in a price [биткоина] fell below a 200-day moving average [EMA]. However, after a while it will grow. It will not happen in three months or a year, but it will happen within two to three years. And now golden time for those who are in the crypt industry. "
Tom Lee is convinced that crypto-currency will become a full-fledged and universally recognized class of assets.
"The return on investment can exceed seven percent only if you buy in the bear market. Bitcoin may have a downturn in the short term. However, this does not override the fact that we are still at the earliest stage of the development of crypto-currency ", – he added.
In his speech to BlockShow Lee also noted that the cryptographic industry now has only 50 million active wallets. At the same time, the total number of Visa and MasterCard accounts is 4.6 billion. Taking into account the potential network effect, the analyst does not exclude that in ten years the price of bitcoin can reach a mark of $ 10 million.
Finally, Tom Lee noted that the BTC will show itself "off the good side" next year, despite the fact that the next three months are fraught with a possible downfall of prices. The analyst's forecast is based on the fact that institutional investors and large corporations, including Microsoft and Starbucks, are interested in digital currencies.
Let's remind, recently Tom Lee stated that the recent sharp decline in the price of bitcoin is inherent in a short-term nature.
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