Lee: “Bitcoin Still Makes Sense For Some Investors”

Leading Wall Street strategist Thomas Lee, co-founder of Fundstrat Global Advisors, thinks that the leading cryptocurrency Bitcoin will eventually make a comeback. Lee says that he sticks to his Bitcoin price prediction of $200,000 even if the current market is negative.

According to Lee, who was a guest on a recent episode of CNBC, the current cryptocurrency bear market is nothing new. The expert pointed out that the cryptocurrency industry is going through a crisis very similar to the one in 2018, when the value of Bitcoin dropped more than 70 percent from its all-time high.

“Looking back at that crypto winter when Bitcoin dropped from $17,000 to $1,200, that was when some of the best projects were created.”

When asked if he still recommends people to buy Bitcoin, Lee replied in the affirmative. He adds that when they first wrote about Bitcoin in 2017, they suggested that people should invest only one percent of their entire wealth in cryptocurrency. Bitcoin’s price was below $1,000 at the time, and even if they didn’t rebalance their portfolio, this conglomerate makes up 40% of their portfolio today.

In 2017, when Lee’s Fundstrat published its first analysis of Bitcoin, the firm estimated that the leading cryptocurrency could be worth between $15,000 and $50,000 by 2022. This prediction was largely correct, as Bitcoin was trading around $50,000 at the start of the year and has dropped to around $16,000 over the past few days as a result of the collapse of FTX, which was previously the third largest exchange.

When asked about Lee’s handling of the FTX collapse, he pointed out that these are “significant” moments in the crypto industry and he has a positive opinion for them as well. Lee supported his view with these words:

“I think it’s a moment of impact for this industry, I think it cleans up a lot of bad players in this industry.”

In February, Lee made an even more positive prediction about Bitcoin, stating that the leading cryptocurrency could reach $200,000 in the coming years. When asked if he still believes in this, he replied that he was pretty sure of his belief in Bitcoin.