- Tom Lee of Fundstrat advises caution over the next two months, citing historical market volatility.
- Bitcoin and other cryptocurrencies like Ethereum and Solana have recently faced significant losses, with Bitcoin approaching the US$56K mark.
- Historical trends from Coinglass show that Bitcoin typically performs poorly in September, with gains in only three out of eleven years.
- Lee suggests that the coming weeks may offer dip-buying opportunities in equity markets, though crypto markets could experience more substantial dips.
If the crypto market would be a plane, this bumpy ride would make you spill your tomato juice, and have the captain leave the seatbelt sign on permanently – at least for a little while longer if Tom Lee, Fundstrat Global Advisors managing partner and head of research is to be believed.
Related: Survey Shows Aussie Investors Shun Real Estate, Flock to Crypto as Ownership Exceeds Global Rates
Bitcoin made some minor gains yesterday but has all but lost these now, slowly but surely dropping toward the US$56K (AU$83.6K) mark, while Ethereum and Solana also booked hefty losses and are down almost 7% on the 24-hour timeframe.
And we may see a bit more of this sideways action if history is any indicator. Data from Coinglass shows that out of the eleven past September months, BTC has only come out positive three times. And even those have not been the strongest months with gains between 2-6%.
Next 8 Weeks Continue to Be Volatile, Says Lee
Lee told CNBC’s Squawk Box, investors should be cautious for the next two months, especially given that we had a really good run so far this year.
Markets have been up seven of the eight months this year. We know it’s an incredibly strong market but we also have the September cuts and the election – things that’ll get people nervous.
Tom Lee, FundstratHowever, it should be noted that Lee is referring to the equity markets here, not crypto, which has not experienced this sort of growth. Rather, crypto has had three negative months and five positive months in 2024 so far – yet, as a whole, BTC is still up over 36% this year.
Dip Buying Opportunities Ahead
But Lee also believes the next few weeks will be an opportunity to buy the dip:
I think in the next 8 weeks people get a chance to buy. It’s good to be cautious but just [be] ready to buy that dip.
Tom Lee, FundstratLee believes investors should carefully monitor the market and take advantage of a possible 7-10% dip – again talking about equities, crypto dips can be much more substantial.
Related: Details on Handheld Crypto Gaming Device SuiPlay0x1 Emerge as Pre-Orders Open for 2025 Release
Lee also commented on Bitcoin’s performance, saying:
Bitcoin Hasn’t Acted Well
Tom Lee, FundstratNo matter what’s next, Lee believes we haven’t seen the top for 2024 yet. Let’s see what the rest of the year brings, especially after the November presidential election.
Credit: Source link
