During a recent appearance on CNBC, Fundstrat’s Tom Lee has admitted that the crypto market has performed “much worse” than he initially expected.
This comes after Lee’s portfolio lost more than $7 billion.
When asked to explain the underperformance of the cryptocurrency sector, Lee states that the industry does not actually have any leverage as of now. This leverage was flushed out during the infamous Oct. 10 crash.
That was like a vortex sucking all the risk appetite toward the precious metals trade.
According to Lee, crypto has suffered from this on a price basis. At the same time, the industry's fundamentals have remained robust. “It’s been a contrast,” he summed up.
Lee also thinks that the broader economy is actually in a good shape.
The new Fed pick
Notably, Lee has also suggested that this uncertainty could be attributed to the new Fed pick.
the market violently interpreted the pick as the return of a "hard money" regime, triggering a massive liquidation event dubbed by some analysts as the "Warsh Effect."
Caroline Amosun
Tomiwabold Olajide
Alex Dovbnya
Denys Serhiichuk