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HomeCrypto NewsMarketFundstrat Co-founder, Tom Lee: "Money Will Continue To Flow From Bonds To Cryptocurrencies"

Fundstrat Co-founder, Tom Lee: “Money Will Continue To Flow From Bonds To Cryptocurrencies”

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Fundstrat co-founder Tom Lee sees a positive future for cryptocurrencies.



Lee thinks money from risky stocks and bonds will continue to flow into cryptocurrencies amid rising base rates.

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Speaking on CNBC’s Crypto World, Tom Lee pointed out that technology stocks and other volatile stocks have begun to fall. The point is growing base rates and uncertainty in the traditional markets. At the same time, bonds do not look attractive either – at current yields, the interest also does not cover inflation. This is where cryptocurrencies come into play:

“It looks like rates will continue to rise, which means that in the next ten years, you will lose the money invested in bonds. And that’s $60 trillion. We should think about where this $60 trillion will flow. The obvious answer would be tech stocks like Facebook and Apple. But I believe that speculative capital from stocks and bonds will eventually flow into cryptocurrencies.”

At the same time, the analyst recalled that the cryptocurrency industry remains very young, and the community is still exploring possible options for using the blockchain, cryptocurrencies, and tokens.

“If you do not have a crystal ball, then it is extremely difficult to predict the price behavior of a cryptocurrency. Drops of 40% are quite common, as are ups. Bitcoin can grow powerfully only a dozen days a year. It’s tough to predict all this,” said Tom Lee.

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Last fall, Lee said that high-risk assets, including cryptocurrencies, are attracting more and more investors.

Also, a similar concept was given by Wells Fargo. Analysts at the multinational bank Wells Fargo believe that cryptocurrencies are waiting for a “phase of hyper-acceptance” and a significant increase in users. In the report, banking analysts compared the current development of the cryptocurrency industry with the development of the Internet in the mid and late 90s.

Recently KPMG Canada, a division of one of the largest accounting firms globally,  has completed an allocation of Bitcoin and Ethereum to its corporate treasury, its first direct investment in crypto assets.

 

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Author

Ammara
Ammarahttps://thecryptobasic.com/
Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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