Tom Lee: Crypto Market Hampered by Deleveraging, Cryptocurrency Parabolic Rallies Typically Follow Precious Metals

Odaily News BitMine Chairman and Fundstrat Co-founder Tom Lee stated in an interview with CNBC, "Cryptocurrencies have been affected by deleveraging. The '1011' crash impacted the market; it was the largest deleveraging event in cryptocurrency history. Then this week, cryptocurrencies were performing well until the 'Greenland' announcement, which triggered volatility in Japanese government bond yields and deleveraging in cryptocurrencies. So, I think, unfortunately, cryptocurrencies should have somewhat followed gold's trajectory, but the effects of deleveraging must be excluded. I believe that's what's really affecting cryptocurrencies."

"I think cryptocurrencies remain very important as a settlement layer, but this is more about smart blockchains. That is to say, compared to Bitcoin, this is more of an Ethereum story. Bitcoin has recently faced some headwinds due to concerns that quantum computing could steal or compromise one-third of old Bitcoin wallets. I don't think the Bitcoin story is over. It's just waiting for regulatory clarity, and institutional adoption is growing. So, I still don't think a $200,000 Bitcoin is that crazy. It's just a doubling of the price."

"Historically, parabolic rallies in cryptocurrencies have often followed parabolic rallies in precious metals. So, unless it doesn't happen in the next few years, I don't think this is a story that has already ended."