Fundstrat co-founder Tom Lee sees a positive future for cryptocurrencies. In his opinion, money from risky stocks and bonds will continue to flow into cryptocurrencies amid rising base rates.
Speaking on CNBC's Crypto World, Tom Lee pointed out that technology stocks, along with other volatile stocks, have begun to fall. The point is growing base rates and uncertainty in the market. At the same time, bonds do not look attractive either - at current yields, the interest does not even cover inflation. This is where cryptocurrencies come into play.
"It looks like rates will continue to rise, which means that in the next 10 years you will lose money invested in bonds. And that's $60 trillion. We should think about where this $60 trillion will flow. The obvious answer would be tech stocks like Facebook and Apple. But I believe that speculative capital from stocks and bonds will eventually flow into cryptocurrencies,"stated Tom Lee.
At the same time, the analyst recalled that the cryptocurrency industry remains very young, and the community is still exploring possible options for using the blockchain, cryptocurrencies and tokens.
"If you do not have a crystal ball, then it is extremely difficult to predict the price behavior of a cryptocurrency. Drops of 40% are quite common, as are ups. Bitcoin can grow powerfully only a dozen days a year. It's very difficult to predict all this,"warned Tom Lee.
Last fall, Lee said that high-risk assets, including cryptocurrencies, are attracting more and more investors.