Thomas Lee, a Bitcoin influencer and the former Chief Equity Strategist at JPMorgan Chase & Co. is of the opinion that ‘investors should HODL on to their Bitcoin investments during periods of decline’.
Thomas Lee has been one of the biggest advocates of Bitcoin and is currently the Managing Partner and Head of Research at Fundstrat Global Advisors. He worked at JP Morgan for seven years before co-founding Fundstrat. His first report on Bitcoin was issued in July, making him the only one from the Wall Street Strategist to do so.
Lee stated on CNBC’s ‘Fast Money’:
“Long-time holders are worried because they have big gains and they’re worried about falling prices. But bitcoin is a great store value. It works really well. It’s kind of boring, because it’s not the latest and most exciting project. But it also is one of the most liquid ways to get exposure to crypto”
Apart from this, in a note written by him, he mentions that if an investor does not hold on to his stock during the 10 best days for Bitcoin, then the yearly return will reduce by 5.4% to 9.2%, losing almost half of its value. Since 2013, Bitcoin full-years gains was attained in an average of 9 days.
“For instance, in 2017, a total of 12 days represent the full-year return of BTC.”
Over the week, Bitcoin has not managed to be priced above $8,000 and is the bearish zone. Compared to the previous year, BTC has lost over 40% in value.
Lee’s Bitcoin misery index is an index coined to assist investors in buying, selling or holding of popular virtual currencies. Lee says that the index shows indicates a 28 score which is still very low. Although, according to Fundstrat’s data, ‘Bitcoin was down every year excluding on the top 10 day gains’. Lee thinks a small number of these days each year can make up a massive increase in Bitcoin value.
In Lee’s opinion, with a small number of days, every year make up the bulk in Bitcoin’s gains.
“I don’t think anyone who owns crypto should feel confident, but we still think bitcoin’s in a bull market.”
Robert Sluymer, Fundstrat analyst says:
“However, we see positive catalysts for Bitcoin later in 2018, including the clarification of regulatory hurdles.”
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