Lee Sees Crypto 'Rage Quitting', Stands by Long-Term Thesis
Fundstrat's Tom Lee believes the recent slump in crypto has triggered 'rage quitting' among investors, as some sell their holdings in response to Mark Cuban's reported decision to dump his Bitcoin (BTC) stash. Lee agrees that crypto has been disappointing, partly because it hasn't moved with equity markets and software.
Lee attributes this selling to a classic market bottom, saying it is 'what always happens at the end of crypto winter'. He stresses that despite the weakness, the long-term case for Bitcoin and Ethereum remains intact, describing them as 'the future of money' due to their scarcity in mass and compute resources.
When asked about the valuation of cryptocurrencies, Lee uses two anchors: network usage and a comparison against gold. According to his math, if Bitcoin had the same network value as gold (heading towards $5,000 per ounce), it would be around $2 million. He also notes that gold is 'not as scarce' as Bitcoin.