Tom Lee says Bitcoin is still a good investment, but why?
Bitcoin has been going down since the bear market came. But the bearish trend escalated in the last three weeks due to the lending crisis.
The Terra collapse, the macroeconomic situation and the current FTX crisis have made 2022 a terrible year for crypto. The fear of more losses has led to a massive withdrawal from stock exchanges in recent weeks. Investors and traders are making moves and seeking ways to reduce the risk of more losses.
But what does the future of Bitcoin look like? Will Bitcoin recover past losses or will it continue to plunge further? A few investors still maintain bullish confidence in the asset and believe BTC will regain its former glory. They hope the situation will soon pass and Bitcoin will recover its original price.
2023 will be better for Bitcoin and other cryptocurrencies: Tom Lee
The head of research at Fundstrat, Tom Lee, is among those with a bullish stance on Bitcoin. He is sure that Bitcoin can be a good investment for some investors. In a recent interview with CNBC, the Bitcoin bull said that the crypto industry was experiencing a bad year. Lee added that he expects 2023 to be better.
For now, the news in the crypto world is all gloomy. Recent rumors suggest possible insolvency for Digital Currency Group and its subsidiaries. One of the firm’s subsidiaries, Genesis, has been looking for new capital from investors. However, their attempts to raise funds have not gone as expected.
In the midst of the hopeless situation, Tom Lee says that next year would be better. Moreso, his firm, Fundstrat, remains optimistic about the future of the entire crypto industry.
Previous bear cycles were purge time for the crypto industry: Tom Lee
Lee compared the current meltdown to similar events that occurred in 2018. According to him, many current major industry players developed during the previous bear cycle. He added that the previous downtime incidents were cathartic moments for the industry. For Lee, the current situation could serve as an opportunity to purge the crypto industry of bad players.
Therefore, he does not believe the story that crypto is dead, but advises investors looking for a balanced portfolio to invest in Bitcoin. Meanwhile, BTC has fallen by 1.22% in the last 24 hours. Bitcoin’s 24-hour trading volume is $24,911,415,512, and a live market cap of $310,602,232,159.
Ethereum, the second largest cryptocurrency, is down 2.72% in the last 24 hours and is currently trading at $1,161. It has a live market cap of $142,299,515,882.
Featured image from Pixabay, chart from TradingView.com
