On January 24th, Tom Lee, Chairman of BitMine and co-founder of Fundstrat, stated in an interview with CNBC, "Cryptocurrencies have always been affected by deleveraging. The '1011' crash shocked the market; it was the largest 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 moving in tandem with gold to some extent, but the effects of deleveraging must be removed, and I believe that's the real reason affecting cryptocurrencies."
I believe cryptocurrency remains a very important settlement layer, but this is more about smart blockchains—meaning it's more of an Ethereum story than Bitcoin. Bitcoin has recently faced some setbacks due to concerns that quantum computing could steal or compromise a third of older Bitcoin wallets. I don't think the Bitcoin story is over. It's just waiting for regulatory clarity, and institutional adoption is growing. So, I still don't think $200,000 for Bitcoin is that crazy. It's just a price doubling.
Historically, the parabolic rise of cryptocurrencies has often followed closely behind the parabolic rise of precious metals. Therefore, unless this doesn't happen in the next few years, I don't believe this is a doomed story.
