On August 15th, Fundstrat Global Advisors co-founder Tom Lee appeared on the Fox Business channel. In the interview he discussed on how to invest in bitcoin, why he considers bitcoin to be a safe haven and the state of the markets and why he does not predict a recession.
Previously, Tom has spoken openly on the future of the crypto market. He anticipates a bullish period in the recent future.
In the course of interview when Tom was questioned whether Bitcoin is a genuine safe haven? He replied saying, Yes Bitcoin is surely a genuine safe haven.
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.
Tom believes that, Bitcoin has done very well this year. He also reminded the bitcoin price that hovered around $3,000 during December 2018. Later the price spiked to the $10,000–12,000 levels. Lee pointed out that “It’s a huge buying opportunity right now”.
Lee also noted that Bitcoin is really uncorrelated to equities, to bonds, so it’s a good diversification hedge.
According to Lee, currently Bitcoin is just resting, and will surely show a significant rise in its price by the end of 2019.
Tom Lee Said :
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.
It seems that Tom Lee is certain that Bitcoin will not just reach highest levels, but also surpass these. Moreover, the emerging macroeconomic downturn could certainly drive even more investors towards cryptocurrencies. Specifically, diversifying and hedging against falling asset prices is essential for institutional investors.