Tom Lee on Bitcoin : HODL ONN!!
Bitcoin bull Thomas Lee calms down the cryptocurrency investors and says that they need to be patient owing to more than 40 percent decline in 2018 itself. He said he relies on his years of experience as a stock analyst as he says this.
Lee who was the former chief equity strategist at JPMorgan Chase & Co., said,
“Market timing is generally discouraged in traditional equity investing. If an investor missed out on the 10 best days (for S&P 500) each year, the annualized return drops to 5.4 percent (ex-10 best), from 9.2 percent. In other words, the case for buy and hold in equities is the opportunity cost of missing out on the 10 best days.”
Lee explained, that if an investor missed out on the 10 best days for Bitcoins each year, the annualized return drops 25 percent annually. This means that on an average, Bitcoin was down every year with the exclusion of the top 10 day gains, according to Fundstrat data collected by Lee and his team. With only a few of days each year accounting for the bulk of Bitcoin’s gains, holding on is a sensible option, he said.
Also Read : Bitcoin Price Will Touch $20,000 Again In June 2018, Says Fundstrat’s Tom Lee
This reveals that it can be a good bet for those pledging to HODL, one frenzied trader’s misspelled entreaty to hold onto the tokens during an earlier rout that’s become the mantra of Bitcoin-purists.
Bitcoins are trading at the breakeven cost of mining, at about $8,000, based on a model by Fundstrat. Fundstrat analysts including Robert Sluymer wrote in the note.
“The overhang from regulatory risk is generally keeping investors sidelined. However, we see positive catalysts for Bitcoin later in 2018, including the clarification of regulatory hurdles.”
KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology ,Cryptocurrencies and upcoming ICO’s.
