Alt-coin bear market is over, but bitcoin is still the best bet: Wall Street’s Tom Lee

Thomas Lee, head of research at Fundstrat Global Advisors, said the bear market for small-cap cryptocurrencies is over. But he said he still thinks bitcoin is the best bet for investors.

“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.

In a note on Tuesday, Lee wrote, “We believe the alt-coin bear market is over,” referring to cryptocurrencies other than major ones such as bitcoin and ethereum.

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…

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