Tom Lee: The crypto market is dragged down by deleveraging; the parabolic rise of cryptocurrencies usually follows closely behind precious metals.

In an interview with CNBC, Tom Lee, Chairman of BitMine and co-founder of Fundstrat, stated, “Cryptocurrencies have always been affected by deleveraging. The '10/11' crash hit the market; that was the biggest deleveraging event in cryptocurrency history. Then this week, cryptocurrencies were performing well until the Greenland statement triggered volatility in Japanese government bond yields and further deleveraging in cryptocurrencies. So I think, unfortunately, cryptocurrencies should have been following gold's movements to some extent, but the effects of deleveraging must be removed, and I think that's what's really affecting cryptocurrencies. I think cryptocurrencies are still very important as a settlement layer, but it's more about smart blockchains, meaning it's more of an Ethereum story relative to Bitcoin. Bitcoin has recently been hit by some shocks because of concerns that quantum computing could steal or compromise a third of old Bitcoin wallets. I don't think the Bitcoin story is broken. It's just waiting for regulatory clarity, and institutional adoption is growing. So, I still don't think 20…” Bitcoin at $10,000 is that crazy. This is just a price doubling. Historically, parabolic rises in cryptocurrencies have often followed parabolic rises in precious metals. So, unless that doesn't happen in the next few years, I don't think this is a broken story.