New statements regarding Bitcoin and Ethereum came from Fundstrat founder and BitMine president Tom Lee, who recently predicted that the price of Ethereum (ETH) could reach $10,000.
Stating that he is very optimistic about Ethereum, Tom Lee warned about the decline in Bitcoin.
Warning for Bitcoin (BTC)!
Speaking in an interview with Pomp Investments founder Anthony Pompliano, Tom Lee warned that BTC could fall by as much as 50%.
Lee said that despite the recent strong rally, the sharp declines in the stock market are a sign that Bitcoin could see declines of up to 50 percent in the future.
Lee warned that BTC is following a highly volatile course and could lose up to 50% of its value, adding that Bitcoin is still highly correlated with stock markets and could therefore still experience larger declines.
He noted that the entry of spot ETFs and institutional investors into the market has increased market stability somewhat, but despite this, Bitcoin still follows the stock market.
“The stock market has seen 25% drops more frequently than Bitcoin, the stock market has made great progress over the last six years, but we have had an unusually large number of 25% drops during that time.
Corrections of around 25% have been common in the stock market over the last six years.
Since Bitcoin still has a high correlation with the stock market, larger declines, up to 50%, are possible.
So if the S&P drops 20 points, Bitcoin could drop 40 points.”
Ethereum is Still Undervalued!
Speaking about the Ethereum prediction and Bitmain2's ETH accumulation, Tom Lee stated that Bitmain will continue to accumulate Ethereum and said, “It will be the largest holding company in the world.”
Lee added that the company currently holds over 3.2 million Ethereum, equivalent to about 2.7% of the total supply, and that they plan to increase this number to 6 million in the long term.
Arguing that Wall Street will embrace Ethereum as a trustless, neutral public blockchain, Lee said:
“If the Ethereum-Bitcoin ratio reaches its 2021 peak, the unit price could rise to around $21,000. Ethereum is still an undervalued asset.”
As you may recall, Tom Lee, along with BitMEX co-founder Arthur Hayes, one of the important names in the market, recently stated that Ethereum will reach $10,000 within the year.
*This is not investment advice.
