“Increasingly, I think investors are comfortable that bitcoin is likely to be viewed as a commodity,” Lee said Tuesday on CNBC’s “Fast Money.” “Whether regulations change around security tokens and registration, bitcoin sits in its own sphere.”
“I’d still be buying bitcoin,” he said.
Lee, who was the chief equity strategist at J.P. Morgan before co-founding Fundstrat, said his firm has an indicator to measure alt-coins, which is “the percent that have tripled over 90 days.”
On Jan. 13, the indicator hit 78 percent, “which is normally a top,” he said.
“In January, we thought you need to rotate back into the large caps because that’s what happens,” he said. “And this indicator has been falling, but yesterday it fell to 3 percent.”
He said he expects the lesser-known, smaller coins will remain in “purgatory” and not begin rallying until at least the middle of August, if not mid-September, due to regulatory uncertainty…