Tom Lee on Crypto & Stock Markets: ‘[Bitcoin] does make sense as a hedge”

• Ever since it was created, the leading cryptocurrency has been correlated to assets such as gold, equities and oil. 
• This is one of the arguments for the nascent asset class to be an effective hedge against global fiat and banking systems. 

Ever since it was created in 2009, the leading cryptocurrency has been correlated to assets such as gold, equities and oil. This is one of the arguments for the nascent asset class to be an effective hedge against global fiat and banking systems. Nevertheless, many recent developments are starting to say something different. The price of many cryptos and bitcoin has seen a flash crash over the past 24 hours as to what many believe is due to the pandemic announcement for the coronavirus.

The co-founder of Fundstrat, Tom Lee, recently sat down in an interview where he gave his opinion on the leading cryptocurrency and other digital assets in the space. He said that they are a decent hedge however, they are not a full hedge. He further said that the flagship cryptocurrency is a disruption to the financial system and therefore could act as a hedge on the stock market when it sees trouble. 

He has further said:

“So in an environment where the stock market’s in big trouble, crypto, I think does make sense as a hedge to the extent that you still going to drive adoption because the more people worry about the world, they’re going to buy cryptocurrencies. But also to the extent, people worry about the banks, they’re going to think about crypto.”

It will be interesting to see how this plays out. For more news on this, crypto portfolios and other updates, keep it with CryptoDaily!