Well-known bitcoin supporter Tom Lee (Thomas Lee), drawing on his years of experience as a stock analyst, says cryptocurrency investors to remain patient in the light of more than 40 percent drop occurring this year.
On Wednesday, managing partner and head of research at Fundstrat Global Advisors LLC wrote a message, which says:
“Tactics for tracking the market in General is not welcome in the traditional investment in securities. In year, there are only the 10 best days (for S&P 500), if the investor will skip them, its annual profit will fall from 9.2% to 5.4%. In other words, for those who missed out on these ten days, a strategy of buying and holding”.
From this it follows that if the investor each year passes the 10 best days for bitcoin, its annual yield is decreasing by 25 percent. According to Fundstrat, bitcoin price is dropping every year, except for the few days that bring profit. Therefore, according to Lee, the tactics of retention is a reasonable option.
Based on the model of Fundstrat you can see that at the moment bitcoin is trading below the break-even cost of production, which is around $8000.
“The prospect of risks associated with regulation usually makes investors stay out of the way”, says Fundstrat Robert Slamer (Robert Sluymer) — “nevertheless, we see positive catalysts for bitcoin, which should appear later this year. Including clarifying the situation with the regulation”.
Recall that earlier this month, Tom Lee and Robert Climer made a forecast that the protracted period of consolidation will last from 150 to 175 days, and should end in a period “from mid-August to mid-September.”