Tom Lee Says Crypto Rally Is in First Wave as Institutions Bet on Big Fourth Quarter
Summary
- Tom Lee said the recent rally in cryptocurrencies is still only the first upward wave of an early-stage advance.
- He said institutions are betting on further gains, citing institutional investors, trading volume, the fourth quarter, and a major market upswing.
- He said Bitcoin, $100,000, $150,000, the possibility of interest-rate increases, and long-term Treasury yields are key variables for the crypto market.
Forecast Trend Report by Period
Tom Lee, co-founder of Fundstrat, said the recent rally in cryptocurrencies is still in its early stages, with institutional investors betting on further gains in the fourth quarter.
Lee told CNBC that the market is still only in its first upward wave, crypto outlet BlockBeats reported on September 1. The rally began before many investors were able to get in, he added.
Institutional investors are clearly buying crypto-related stocks, Lee said. The sharp rise in trading volume signals they are positioning for a major market upswing in the fourth quarter.
On Bitcoin, Lee said it would not be difficult for the token to climb above $100,000 because relatively few people still own cryptocurrencies. A move to $150,000 also remains possible.
Lee cited the possibility of further US interest-rate increases as a variable. Even if the Federal Reserve raises its benchmark rate, falling long-term Treasury yields could effectively ease financial conditions, making moves in long-term yields a key variable for the crypto market going forward.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.