Bitcoin Return Hinges on Just 10 Days per Year, Says Tom Lee

Fundstrat strategist Tom Lee states that Bitcoin's entire return hinges on just 10 days per year. According to him, if you exclude those 10 best days each year from the past decade or so, investors would have been down 27% annually.

The concentration of profits in a few trading days is what makes timing the market challenging, Lee emphasizes. He also points out that this dynamic isn't unique to cryptocurrencies, equities exhibit similar behavior.

Research from Fundstrat shows that missing the best days in the S&P 500 can lead to negative long-term returns. The top 10 trading days in the past three years alone accounted for more than 24 percentage points of returns.

Lee suggests that investors riding the four-year cycle might wait for its 'early window', which typically falls between August and October, when Bitcoin may reach $50,000 to $60,000. However, he acknowledges that any rallies in crypto are often short-lived due to its volatility.