Tom Lee: Crypto Market Dragged by Deleveraging, Cryptocurrency Parabolic Rallies Typically Follow Precious Metals

BlockBeats News, January 24th, BitMine Chairman and Fundstrat Co-Founder Tom Lee said in an interview with CNBC, "Cryptocurrency has always been affected by deleveraging. The '1011' crash had a huge impact on the market, which was the biggest deleveraging event in cryptocurrency history. Then this week, cryptocurrency was performing well until the 'Greenland' statement was released, causing volatility in Japanese government bond yields and cryptocurrency deleveraging. So, unfortunately, I think cryptocurrency, to some extent, should have followed the trend of gold, but the deleveraging effect must be removed. I think this is the real reason affecting cryptocurrency."

"I believe cryptocurrency remains very important as a settlement layer, but this is more about smart contracts, meaning that relative to Bitcoin, this is more of an Ethereum story. Bitcoin has recently faced some challenges because some people are concerned that quantum computing could steal or break into one-third of Bitcoin's old wallets. I don't think Bitcoin's story has collapsed. It's just waiting for regulatory clarity, and institutional adoption is growing. So, I still don't think a $200,000 Bitcoin is that crazy. It's just a doubling of the price."

"Historically, cryptocurrency's parabolic rise often follows the parabolic rise of precious metals. So, unless that doesn't happen in the next few years, I don't think this is a story that has already collapsed."