Wall Street’s Biggest Bitcoin Bull Tom Lee says KEEP CALM and HODL
Tom Lee, former JP Morgan chief equities analyst and co-founder/chief researcher at Fundstrat Global Advisers, has issued a note to Bitcoin investors urging them to HODL out the current bear market. Lee is the inventor of the Bitcoin Misery Index (BMI), which indicates that the lower the index is the more positive the outlook for the price to move upwards.
Chuck Jones writing for Forbes magazine has noted that the analysis Tom Lee uses in his Bitcoin Misery Index is, ‘’similar to what has been done for the S&P 500.’’
According to Tom Lee the Bitcoin Misery Index is telling crypto investors to keep all of the media FUD in perspective. When the BMI is at ‘misery level’ it means that Bitcoin will rebound within 12 months and enter another bull market.
He makes the point that the current volatility means HODL-ing is by far the most sensible approach. In an earlier note to investors on March Lee suggested that the bear market for alt coins was nearing its end.
Source: Fundstrat, Forbes
Source: Fundstrat, CNBC
Two days ago, Tom Lee was on CNBC defending his view that HODL-ing was the best strategy for Bitcoin investors while the price is so volatile. He commented that investors need to keep current events in historical perspective.
‘’I don’t think we have the conditions that took place in 2014 which was a huge liquidity shock. I mean we had the largest exchange [Mt.Gox] announce a massive hack. That’s not the type of seismic event taking place in crypto today.’’
Lee further noted that crypto is still in its infancy and he compared its current stage of development to the dotcom boom in the 1990s when the internet and mobile phone technology were taking off:
‘’It reminds me a lot of my work when I was a wireless analyst in the 90s, you know where people thought it was all about long distance and plain old telephone service and people thought cellular was this crappy little capital intensive business which is now bigger than everything.’’
He went on to describe how this present bear market phase was actually positive from the point of view of getting big money into the Bitcoin space:
‘’We’re doing a lot of calls and meetings with traditional [money] managers. They’re taking this chance while Bitcoin is consolidating and they’re seeing the case for it as a real store of value … to get educated.’’
At the end of the interview Lee was asked:
‘’Fresh money into Bitcoin or the S&P 500?’’
Lee replied:
‘’If it’s between now and the year end it’s easily Bitcoin. We are bullish on equities it’s just I think Bitcoin has a lot more upside.’’
Nice article. I believe the market will bounce back. I look at it as a good time to buy more of my favorite coins !
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Why thank you. I quite agree its bargain basement prices.