Funstrat strategist Tom Lee, who has long been optimistic about Bitcoin’s future prospects, thinks it’s a good time to buy alt-coins now, and that a “Great Crypto Rotation” might be on the cards.
Speaking on CNBC’s Fast Money, Lee said:
“We think 2018 is going to be a story about rotation. But the rotation we're referring to is among the smaller alt-coins and the large platform tokens.”
Tokens like Ripple, Cardano, Lumens, IOTA and XEM have grown significantly recently, and Lee believes that gains made by small-cap tokens are moving into large-cap coins, like the ones in the top 10:
"That generally marks a peak and then we start to see rotation into large cap-quality tokens. We're starting to see this move into the top 10 tokens and that should actually help large caps rally."
Even though Bitcoin rose to fame last year with its staggering rise from $1,000 to $20,000, it was far from the only cryptocurrency to perform beyond expectations, with other large cap coins such as Ethereum and Litecoin also giving holders huge returns.
However, with negative news coming out of South Korea and China, coupled with what many believe to be an effect of the CBOE and CME futures contracts, Bitcoin tumbled hard this month, dropping under $10,000 before recovering a bit.
Currently, Bitcoin and the cryptocurrency market as a whole is trading sideways, and this trend may continue up until mid-February when the Lunar New Year is celebrated in China.
Meanwhile, those looking for the next Bitcoin, might be able to use this market slump as an opportunity to buy solid alt-coins that have strong prospects of growth this year. Tom Lee remains bullish on Bitcoin and believes we will see $25,000 before the end of 2018.