Bitcoin's Plunge May Have Been Precursor to Market Turmoil
Appearing on CNBC this week, Fundstrat Global Advisors' Tom Lee acknowledges bitcoin's crash two months ago could be seen as a signal stocks would plunge next.
Discussing Bitcoin and other cryptocurrencies weakened position, Lee compared that situation to what we witnessed with the stock market over the past two weeks.
"it could easily look like a chart that looks like the S&P, because both had a parabolic move and then subsequently gave back some of these gains," Lee told CNBC's "Trading Nation”.
"In the past 12 months, not only did we have a strong rally in equities, we had a strong rally in cryptocurrencies," he said. "I wouldn't be surprised if those investors who saw risk-on assets everywhere outperforming globally were also buying cryptocurrencies."
Lee is still optimistic about the future of Bitcoin.
He predicted bitcoin prices could triple to $25,000 by year-end. But he said it'll still be less than a fraction of the S&P 500's value — not enough to move the needle on the stock market's direction.
Fundstrat’s Tom Lee sees parallels between bitcoin crash and stock market turmoil from CNBC.
