Fundstrat co-founder Tom Lee sees a positive future for cryptocurrencies. In his opinion, money from risky stocks and bonds will continue to flow into cryptocurrencies amid rising base rates.
On CNBC’s Crypto World, Tom Lee pointed out that technology stocks, along with other volatile stocks, have begun to fall. The point is growing base rates and uncertainty in the market. At the same time, bonds do not look attractive either – at current yields, the interest does not even cover inflation. This is where cryptocurrencies come into play:
“It looks like rates will continue to rise, which means that in the next 10 years you will lose money invested in bonds. And that’s $60 trillion. We should think about where this $60 trillion will flow. The obvious answer would be tech stocks like Facebook and Apple. But I believe that speculative capital from stocks and bonds will eventually flow into cryptocurrencies.”
At the same time, the analyst recalled that the cryptocurrency industry remains very young and the community is still exploring possible options for using the blockchain, cryptocurrencies and tokens.
“If you do not have a crystal ball, then it is extremely difficult to predict the price behavior of a cryptocurrency. Drops of 40% are quite common, as are ups. Bitcoin can grow powerfully only a dozen days a year. It’s very difficult to predict all this,” warned Tom Lee.
Last fall, Lee said that high-risk assets, including cryptocurrencies, are attracting more and more investors.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
