The co-founder of the analytical firm Fundstrat, Tom Lee, has said that Bitcoin remains hyper volatile, but its turnover is inferior to other assets, which does not allow us to talk about its high “speculativeness.”
This is how the top manager has reacted to the thesis that many investors are in no hurry to add digital assets. Skeptics cite a lack of regulatory certainty and a high degree of speculation in the market, although they are showing considerable interest.
Despite the industry’s labeling of the “Wild West,” the volatility of the MVIS CryptoCompare Digital Assets 100 Index, which tracks the top -100 largest crypto assets, no more than double that of any other index.
Lee calculates Bitcoin has a turnover of 2:1, compared to 96:1 for the US dollar and 31:1 for a barrel of oil.
For the Fundstrat co-founder, Bitcoin is like gold in the early days of his exchange trading. The precious metal also experienced strong price fluctuations in the 1970s until the market capitalization reached $10 trillion five or six years later. He has said:
“Today, when penetration is so low, you can expect Bitcoin to be hyper volatile. But as 9 out of 10 households invest in the first cryptocurrency, its price fluctuations will weaken.”
