Wall Street strategist Tom Lee framed Mark Cuban’s sale of Bitcoin (CRYPTO: BTC) as a sign of “rage-quitting,” the kind of move that, according to him, typically happens at the end of cryptocurrency winter
A Sign Of Bottom?
During an interview with CNBC, Lee partially agreed with Cuban’s rationale that Bitcoin hasn’t acted the way it was supposed to.
“I think Mark is right. Crypto has been disappointing because crypto should move with equity markets, and it should be rallying with software. Software is really starting to rally big, and crypto hasn’t moved,” Lee said.
However, Fundstrat’s head of research viewed the move as “rage quitting” — people selling because they sense something is “wrong” with cryptocurrency.
“I think that’s what always happens at the end of crypto winter,” Lee said.
Lee Doesn’t Think Crypto Is ‘Broken’
Lee defended Bitcoin and Ethereum (CRYPTO: ETH), noting that cryptocurrency’s long-term thesis remains intact despite recent underperformance.
“If someone asks me is the thesis for Bitcoin or Ethereum broken? It’s absolutely not,” Lee said.
Cuban is the same person who once aggressively endorsed Bitcoin as a hedge against inflation, only to sell “most” of it because it didn’t turn out to be the shield he expected it to be.
Strategy Inc. (NASDAQ:MSTR) CEO Phong Le also weighed in on Cuban’s move, noting last week that it’s common for “skeptical traders” to buy in, make significant profits during a bull market, and then exit once they find the “next thing.”
Interestingly, just earlier this week, the Bitcoin treasury giant reported selling BTC worth $2.5 million, a move that has hammered sentiment and precipitated the cryptocurrency’s crash below $67,000.
Price Action: At the time of writing, BTC was exchanging hands at $66,718.66, down 5.53% in the last 24 hours, according to data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Kathy Hutchins / Shutterstock.com
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