The bitcoin price may not be performing as expected right now and just add more fuel in the flames, Fundstrat Co-Founder Thomas Lee has an unfortunate truth for crypto bulls. Furthermore, Lee doesn't think that the leading cryptocurrency is a ‘safe haven’ for investors, in fact, it’s quite the opposite as he predicts that the S&P 500 will need a hit some new highs before 2020 before BTC surge again.
Here’s what Lee posted on Twitter yesterday.
The downturn in #bitcoin followed the risk-off selloff in #equities.
— Thomas Lee (@fundstrat) September 25, 2019
- reinforces our ‘unpopular’ opinion bitcoin does not do well in a ‘trendless macro’ environment.
- New highs needed in S&P 500 before $BTC can blast off.
Why? We think crypto is retail and thus, risk on https://t.co/y5Yo5NepPz
For those that don’t know, the S&P 500 is “a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the U.S. stock market.”
The reasoning behind lee’s views is pretty sound. Both he and his team at Fundstrat believe it is a retail investment that drives the space further, not institutional investors. With strong stock markets, the market usually helps to encourage smaller investor to take on more risk. With this, Lee’s theory is that a record-breaking S&P 500 is likely to equal a well-funded retail consumer with some cash to burn.
Price
In terms of price right now, the leading cryptocurrency is valued at $8,453 and is back in the green with a 0.50 percent increase at the time of writing.
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