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Tom Lee: I'm pleasantly surprised that bitcoin and altcoins stabilized

FXcoins - Tom Lee: I'm pleasantly surprised that bitcoin and altcoins stabilized

In the last month, bitcoin and altcoins retain the unusual stability: the levels of volatility similar to what was observed in some traditional markets, such as the American stock market.

 

However, it is now a storm so that much of the lost profit only in 2018.

 

20-day historical volatility of bitcoin equal to the index for the stock Amazon (AMAZ), Netflix (NFLX) and Nvidia (NVDA). This fact surprised many investors, as historically, the daily volatility of scriptaction constituted at least 3%, even if the news cycles associated with cryptosphere was pretty lethargic.

 

Trying to understand the reasons for this market behavior, the presenters of CNBC''s Squawk Box invited on the air of the founder of Fundstrat Global Advisors Tom Lee, who has a reputation as a staunch bitcoin"bull".

 

First of all If drew the attention of the audience on the current state of the stock market, which dropped 9% since the beginning of October. The expert noted that the bitcoin remained devolatilized amid the turmoil in traditional markets. Recalling this fact, Lee even called bitcoin "devolatilized tool" — it is almost unheard of feature in the short history of cryptocurrency industry.

 

Bitcoin not only remained stable in comparison with the traditional stock, but also, according to Lee, surpassed them. Famous captainvalor developed his idea:

 

Surprisingly, given how bitcoin is small in the sense of market capitalization. The total market capitalization of crypto-currencies is $200 billion, while global stock markets with their capitalization of nearly $90 trillion. experienced a significant correction... And I'm surprised — pleasantly surprised.

01 November 2018

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