According to reports, Tom Lee, who serves as one of the senior analysts at Fundstrat Global Advisors, Bitcoin is an excellent safe haven asset. Lee recently affirmed the status of the number one asset class calling it the “genuine safe haven asset.” Bitcoin is trading above the $10k mark as of press time. It has held this position in recent weeks.
Lee Claims Crypto Prices Increase When There’s Political Turmoil
The Fundstrat analyst made the affirmation during a recent interview on Fox Business. According to Lee, whenever there’s political turmoil, the price of cryptos tend to go up very high. The reason why this occurs is that most people in the space are looking to protect their digital assets from devaluation, hence a key reason why they use Bitcoin. Note that the premium in markets like that of Hong Kong is current proof of this ideology.
Lee Claims That Bitcoin Is the Ideal Diverse Portfolio
The investor and Fundstrat analyst also affirmed that Bitcoin has been doing very well this year. After last year’s extended bear market that ended in the early part of 2019, the number one asset was worth $3,000. But now it has once again surpassed the $10k mark and even moved to 13k.despite dropping under 13k, the asset class has remained above $10k.
The future appears set to be better for Bitcoin according to Lee, who expects the all-time high price to be broken before this year ends. Lee also affirmed that Bitcoin is a great strategy or model for diversification. According to Fundstrat analyst, this is mainly because it isn’t really correlated with the reminder of the digital currency market, hence, it does well when traditional markets aren’t not doing well.
Lee Advises Investors to Invest 1 to 2% of Their Portfolio in BTC
Additionally, Lee also believes that if crypto investors choose to invest at least 1 or 2% of their portfolio in Bitcoin will be a good bet. He says it is the best bet for situations like the one we are currently in. Lee went on to say that the cryptocurrency community surely wants his assertions to be right.
If we follow history, we will see that the market is usually very popular whenever the prices of digital assets were going up. In fact, this was the case only a few months ago. It is not surprising that the majority most people still believe that the price of BTC will rise more and even reach the all-time high.
They are hoping that the asset class will take the whole digital currency market together higher in a fresh altcoin season. Lee isn’t far from the truth regarding his analysis and description of BTC. Calling BTC the perfect diverse portfolio is correct. Tagging Bitcoin a safe haven asset class will only make investor hearts sweet.
The price of Bitcoin is likely going to stay above the 10k mark for the main time. And this might extend to the next few months. According to data given by CoinMarketCap, the price of BTC is trading at $10,425.03. The digital asset is up by 0.75% in the last 24 hours. CoinMarketCap lists Bitcoin’s total market capitalization as $186,434,448,263 as of when this content was published.