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Bitcoin [BTC] and cryptocurrencies are correlated to global markets causing panic selling, says Tom Lee




Bitcoin [BTC] and cryptocurrencies are correlated to global markets causing panic selling, says Tom Lee
Source: Unsplash

Fundstrat’s Thomas Lee more commonly known as Tom Lee recently spoke about Bitcoin and the current bear market and panic selling and what it means for other cryptocurrencies.

In the interview with Cointelegraph, Tom Lee discussed the global market meltdown that is currently happening with the Dow and S&P and how cryptocurrencies like Bitcoin and XRP had a “negative correlation” with the global markets. He added that the 10% meltdown of the global market in the recent six weeks had flipped this scenario and that cryptocurrencies are now correlated with the global markets essentially leading to panic selling.

According to Lee, the panic selling would be a good time buy to Bitcoin and said that people who invested in the S&P when it crashed 200 points got good returns as compared to people who panic sold their stocks. Lee further added that although people made a short-term loss they made a big return in the long-term.

He correlated this with Bitcoin and said:

“So to me, crypto is exactly this moment that Bitcoin may have a downside in the near term but does this change the fact that it’s still the earliest days of crypto and it’s about to become an emerging asset class. Well, those are going to carry much higher prices.”

Furthermore, Lee added that one should not invest more than 2% in cryptocurrencies to avoid worrying about it all the time. He continued:

“The thing is to realize that some of the crypto projects are probably hopeless. But things like Bitcoin and Ethereum [ETH] or XRP have staying power. And these are the ones where unless you think the protocols actually completely broken you’re seeing price distortion caused by panic selling.”

Lee said that he was bullish in terms of Bitcoin for 2019 and that he was looking forward to more adoption and real-world use cases for Bitcoin. He also said that there would be an investment wave in the upcoming year for Bitcoin and other cryptocurrencies.

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.


Bitcoin [BTC]: Morgan Creek CEO compares BTC returns to endowment returns

Akash Anand



Bitcoin [BTC] returns compared to endowment returns by Morgan Creek CEO
Source: Pixabay

Bitcoin [BTC] and the rest of the cryptocurrency market has seen something of an upgrade, compared to its situation in 2018 when the bear market resulted prices falling from their peak. Many supporters of the world’s largest cryptocurrency have repeatedly claimed that the return on investments on Bitcoin has always been greater than that of traditional financial markets.

In a recent tweet, Mark Yusko, CEO and Chief Investment Officer of Morgan Creek Digital Capital, pointed out some value points of adding Bitcoin to an investor’s portfolio. Yusko tweeted,

“Some numbers to ponder when thinking about value of adding #Bitcoin to your portfolio
Endowments have $613B in Assets. Average return over past 5 yrs was mediocre 7.2%
Had they allocated 1% to $BTC return would’ve been 9.2%
Had #Bitcoin gone to zero, return would’ve been 7%.”

The Morgan Creek official made this statement on the back of Bitcoin’s stellar performance over the past couple of weeks. Ever since the world’s largest cryptocurrency fell from its $6000 hold back in November 2018 to settle below $4000, it found it difficult to break that threshold. The point, considered by many experts in the field as being close to Bitcoin’s bottom, continued to pull the cryptocurrency into a bearish vortex. Since April 1, Bitcoin’s price has spiked, in stark contrast to the strong sideways movement that it held since November.

Looking at the numbers, Yusko’s statements about BTC yields can be verified because investors holding the cryptocurrency at the $4170 mark on March 31 saw their portfolio spike by a whopping 100 percent on May 16, when the price touched $8280.

Mark Yusko was also in the news recently when he stated that Bitcoin was a great diversifying asset. He backed this up by comparing the digital asset’s performance with that of the S&P market. He said,

“Morgan Creek had launched the cryptocurrency challenge back in December and there were not many takers. In a way that was good because BTC is up by more than 100 percent right now, which is a much better hit rate than that of the S&P market. We will see that in the next 10 years, Bitcoin will outstrip even its current performance and maybe even more.”


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