Tom Lee, head of Ethereum finance company Bitmine and co-founder of Fundstrat, said in an interview with CNBC that the market may be beginning a bottoming process.
Mr Lee said the market has remained stronger than expected despite recent geopolitical risks and macroeconomic uncertainties.
Lee said that while no one wants the United States to become embroiled in a potential conflict, the market’s resilience is remarkable. “No one wants the U.S. to end up in a conflict, but it’s worth noting that the market has been much stronger than expected,” Lee said, adding that while it can’t be definitively said that a bottom has been reached yet, a pattern resembling a bottom is emerging. The analyst said that despite the continued bad news, the market has been able to digest these developments and remains stable overall.
Lee also said that the investor position has recently been significantly reorganized. He said the market should be closely monitored for signs of panic, especially the volatility index VIX, which has given important signals in the past. Lee pointed out that the VIX index reached a high of 80 last year and suggested it may not reach a similar level this time.
Another sign that the market is nearing the bottom is that risk assets are rebounding despite panic-inducing news, Lee said. He said developments such as gold continuing to fall while the stock market rose showed that the market was starting to “clean up”.
Tom Lee also said March could be a time when the market is forming a bottom. According to the analyst, about 90% of the decline in software companies, major tech stocks known as the “Mag 7” and cryptocurrencies is complete. Lee said these assets are starting to dominate the market again, which is a positive sign.
*This is not investment advice.
