Renowned market strategist Tom Lee on Monday recommended buying stocks amid the recent market sell-off triggered by President Donald Trump’s tariffs but advised caution for Bitcoin BTC/USD.
What Happened: Lee, managing partner and head of research at Fundstrat Global Advisors, stated in a CNBC interview that Bitcoin could face short-term hurdles despite its strong long-term potential.
“But I think that there is still an argument that in the short term Bitcoin is a risk-on asset, so as the market liquidates, which happened over the weekend, Bitcoin takes a hit. So I'd say February is not looking great for Bitcoin in the near term,” Lee predicted.
Lee believed the $95,000 mark was “probably not the floor for this month” and that Bitcoin may fall further to $70,000 before resuming its uptrend. The analyst said that further downsides will provide a buying opportunity.
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As for stocks, Lee said that the market usually “overreacts” to external developments like trade wars.
“So if this is the first reaction, I would probably guess that the second reaction is pulling back from some of that decline.”
Why It Matters: These comments preceded a strong recovery in stock futures and cryptocurrencies after Trump paused tariffs on Canada and Mexico.
The Dow Jones Industrial Average Futures was up 0.21% as of this writing, while Bitcoin surged back above $100,000.
Lee’s latest forecast aligned with his previous predictions around Bitcoin. Last month, he anticipated Bitcoin would test support levels at $70,000 or even the $50,000 range. However, he maintained a long-term bullish stance, targeting $250,000 in 2025.
Price Action: At the time of writing, Bitcoin was exchanging hands at $101,179.34, up 7.44% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: Shutterstock.com
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