According to a group of analysts at Fundstrat, the Wall Street research firm led by noted bitcoin bull Tom Lee, says that the bear market for alt-coin, or alternative currencies, is “largely over.”
At the same time he also assured that bitcoin remains the best bet for investors. Lee said Tuesday on CNBC,
“Increasingly, I think investors are comfortable that bitcoin is likely to be viewed as a commodity, Whether regulations change around security tokens and registration, bitcoin sits in its own sphere. I’d still be buying bitcoin.”
In a note on Tuesday, Lee wrote, “We believe the alt-coin bear market is over,” while referring to cryptocurrencies other than major ones such as bitcoin and ethereum.
For the most part, smaller cryptocurrencies have been stuck in a rout since the beginning of 2018. In total, the market for digital coins has shed over $500 billion of its value from an all-time high above $800 billion at the beginning of the year.
Lee, said that at Fundstrat, the team has an indicator to measure alt-coins, which is “the percent that have tripled over 90 days.”
On Jan. 13, the indicator hit 78 percent, which according to him “is normally a top,”
He further added,
“In January, we thought you need to rotate back into the large caps because that’s what happens. And this indicator has been falling, but yesterday it fell to 3 percent.”
In a late February report, Lee had warned investors to avoid alt-coins until late March or early April based on historical performance of previous sell-offs and subsequent rallies.
The value of all cryptocurrencies excluding bitcoin has roughly halved from $376 billion in late December to $193 billion Tuesday, according to CoinMarketCap.
Lee still expects bitcoin to reach $20,000 by the middle of the year and $25,000 by the end of the year.
KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology ,Cryptocurrencies and upcoming ICO’s.
Rohit Kukreja
Rohit Kukreja is a Commerce graduate with Financial Markets expertise involving Stocks, Forex, Futures & Options Market and now Bitcoins & Cryptocurrency Markets. Blockchain Enthusiast but not a techie, Rohit is an active member of various Blockchain & Crypto communities all over India.
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
