Tom Lee, managing partner and head of research at Fundrustat Global Advisors, believes Bitcoin’s decline is ‘very healthy’.
People Lee, who was not surprised by the volatile ups and downs of the Bitcoin price this month, which he had trouble understanding, said in an interview with Jonathan Ferro at Bloomberg Daybreak:
“It has tripled in the last six weeks. I don’t think anyone should be surprised at Bitcoin’s decline, given that the price of Bitcoin has risen… Otherwise, we would be standing on a parabola that is gaining momentum, right?”
When asked why this change in Bitcoin’s price, Lee , called it just a misunderstanding. Through Frundstrat’s research methods, he said:
“If you look at the number of wallets and transaction activity per wallet, you’ll see that over the past four years, Bitcoin has accounted for 94% of its status. So, Bitcoin is actually tracking the network value.”
Thinking that people who believe that transactions are made by pure speculation do not understand Bitcoin, Lee said that Bitcoin is not a bubble because it is held by only a group of people.
He said in September that he believes the Bitcoin price will reach $25,000 by 2022. He then predicted that it would be considered “digital gold” for millennia and that the price would exceed 100,000 in the next ten years.
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