Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, believes that Bitcoin’s pullback is ‘very healthy’.
In an interview with Jonathan Ferro on Bloomberg Daybreak: Americas, Lee answered several questions. Bitcoin’s price fluctuated aggressively this month, and while people failed to understand the trend, Lee was not surprised.
“I don’t think anyone should be surprised if Bitcoin is pulling back, given it’s nearly tripled in the last six weeks … Otherwise, we’d be staring at a parabola that’s gaining in acceleration, right?” he said.
When asked why no one could predict Bitcoin’s price, Lee simply called it a misconception. Through Frundstrat’s research methods, he explained:
If you look at the number of wallets, and transaction activity per wallet, that explains 94% of the move of Bitcoin in the last four years. So, Bitcoin is actually essentially following network value.
Lee also thinks people don’t understand Bitcoin if they believe it is trading on pure speculation. He further stated that Bitcoin is not a bubble, since it’s only held by a small group of people.
Lee has openly supported Bitcoin – in September he predicted Bitcoin’s price would reach $25,000 by 2022. He then called it “digital gold” for millennials, and predicted that the price would cross $100,000 in the next ten years.
After dropping by more than 40%, Bitcoin’s price has started recovering slowly. It is currently trading at $16,000.