Cryptocurrency market has had one of the toughest years since the birth of Bitcoin in 2009. However, it is not too late for a comeback, according to a venture capitalist Tom Lee.
Bitcoin and Ethereum were the star cryptocurrencies in 2017, but this year has been a different story. The industry lost nearly $70 billion worth of market capitalization this month, according to CoinMarketCap.com. The price of Bitcoin started falling from around $6500 to a low of just over $4000 at the time of writing. And while crypto markets continue to see red, millionaire investor Tom Lee maintains his bullish sentiments. He asked investors to remain patient as he believes Bitcoin, Ethereum and Ripple (XRP) will stage a bull soon.
In an interview with Cointelegraph at the BlockShow Asia 2018 conference in Singapore, Fundstradt Global Advisor’s Tom Lee advised investors to stick to the largest crypto assets by market capitalization such as Bitcoin, Ethereum and Ripple (XRP).
“I think people need to be patient. But I think one of the most important things that we advise our clients is that crypto as an investment should really be 1 to 2% of their allocation, so that number one, they’re not worrying about it every day. But also, that 2% can become 50% in a decade. It can grow dramatically.
I think the other thing is to realize that some of the crypto projects are probably hopeless. But things like Bitcoin and Ethereum or XRP have staying power. And these are the ones where unless you think the protocol is actually completely broken, you’re seeing price distortion caused by panic selling.”
Earlier this year, Lee said the entry of institutional investors into the crypto market would be one of the factors which could potentially trigger a bitcoin bull rally. He stated:
“I think institutional investors have gained a lot of interest, and they haven’t really come into crypto yet because there is still some regulatory uncertainty. But that sort of ultimate allocation into crypto as an asset class is going to be a powerful reason why Bitcoin rallies.”