Fundstrat Chief Investment Officer Tom Lee says those who turned a blind eye to Bitcoin likely believe that BTC will eventually fall all the way to zero.
In an interview on the Global Money Talk YouTube channel, Lee says Bitcoin has proven its staying power after more than a decade of existence.
He also notes that it is now highly unlikely that Bitcoin will disappear, as the new Trump administration has repeatedly expressed its support for the largest cryptocurrency by market capitalization.
“I think it’s probably better to just observe a few things. One is that Bitcoin has been around for 15 years now and there has been no Bitcoin 2.0 yet. So there is no crypto 2.0, Bitcoin is the remaining chain.
And Bitcoin has become a $2 trillion asset, with nothing ever in financial history reaching $2 trillion and then disappearing. If it was $100 billion, it’s a different argument.
In third place is the US government [has] reiterated its commitment to making Bitcoin a strategic reserve. That’s not bad for the price of Bitcoin. So if someone looks at this and says, “They don’t understand Bitcoin, so they decide not to own it.”
It’s a catastrophic way to look at markets.”
Lee also believes that the macroeconomic environment appears to be acting as a tailwind for risky assets such as stocks and cryptocurrencies, at least for the first half of the year. He adds that his bullish stance is supported by nervous market sentiment and the huge amount of cash still waiting in the wings.
“There is probably room for more positive surprises in the first half because we have a new president who is very pro-business, probably the most pro-business president of modern times. And with cabinet selections so far that the market is very happy with. That should give investors room to become optimistic, what they call ‘animal spirits’.
And the second tailwind is that the Fed is dovish. And that means that the central bank is easing. So that is positive for shares.
The third is that investors are cautious because almost everyone we spoke to thinks valuations are expensive or because we’ve had two good years. [the next year] must be bad. So we know that sentiment is cautious. When people are cautious, you usually bet against caution.
And the fourth is that mechanically we know there’s a lot of money on the sidelines. There’s a lot of firepower: $7 trillion in cash on the sidelines.
So I would take this as a positive for the first half of [this] years.”
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