Tom Lee, chief investment officer at Fundstrat, says those who turn a blind eye to Bitcoin likely believe BTC will eventually drop to zero.
In an interview on the Global Money Talk YouTube channel, Lee said that Bitcoin has proven its ability to survive after more than a decade of existence.
He also points out that Bitcoin is now unlikely to disappear, given that the incoming Trump administration has repeatedly expressed support for the largest cryptocurrency by market capitalization.
“I think it’s probably best to just note a few things. The first is that Bitcoin has been around now for 15 years, and there has been no Bitcoin 2.0. So there is no crypto 2.0, Bitcoin is the surviving chain.
Bitcoin became a $2 trillion asset and nothing in financial history has reached $2 trillion and then disappeared. It’s a different argument if it’s $100 billion.
The third is the United States government [has] It reiterated its commitment to making Bitcoin a strategic reserve asset. This is not bad for the price of Bitcoin. So, if someone saw this and said, “Well, they don’t understand Bitcoin, so they decided not to have it.”
“It’s a disastrous way to look at the markets.”
Lee also believes the macroeconomic backdrop appears to be a tailwind for risky assets such as stocks and cryptocurrencies, at least in the first half of the year. He adds that his bullish stance is supported by tense market sentiment and the huge amount of money still waiting.
“There may be room for more positive surprises in the first half because we have an incoming president who is very pro-business, perhaps the most pro-business president in modern times. And with Cabinet picks so far that the market is very happy with. So that should provide room for investors.” To become optimistic is what they call “animal instincts.”
The second tailwind is that the Fed is dovish. What this means is that the central bank is moving towards easing. So this is positive for stocks.
The third reason is that investors are cautious because almost everyone we talked to thinks valuations are too expensive or because we’ve had a good couple of years; [the next year] It must be bad. So we know that emotions are cautious. Usually when people are cautious, you bet on caution.
The fourth is that we automatically know that there is a lot of money on the sidelines. There’s a lot of firepower – $7 trillion of cash on the sidelines.
So I see this as a positive for the first half of [this] year.”
Never miss an opportunity – sign up to get email alerts delivered directly to your inbox
Check price action
Follow us on X, Facebook and cable
Browse Hodl’s daily mix
 
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/WhiteBarbie/DDevecee