Tom Lee, the head of research at Fundstrat Global Advisors and a well-known bitcoin bull, has recently reaffirmed that his research has shown bitcoins’s full-year returns are generated in only 10 days, hinting that HODLing makes sense.
On social media, Lee referenced this week’s crypto market rally, Lee noted that it can serve as a reminder that bitcoin, the flagship cryptocurrency, has historically generated its annual gains in 10 days.
— Thomas Lee (@fundstrat) May 11, 2019
Lee’s research was initially revealed last year, and it showed that, since 2013, the flagship cryptocurrency needed only 10 days or less to see its full-year returns. At the time, Lee used 2017 as an example, noting then “a total of 12 days” represented the cryptocurrency’s full-year return.
According to the Wall Street analyst, if an investor didn’t hold on to stocks through the 10 best days for the S&P 500 each year, his annualized return would drop from 9.2% to 5.4%. Comparatively, if an investor doesn’t hold BTC for its top 10 days, his annualized return would drop to -25%.
2/ Reminder that BTC generally generates all of its performance within 10D of any year.
–ex the top 10 days, BTC is down 25% annually since 2013 pic.twitter.com/zoEocEEZvu
— Thomas Lee (@fundstrat) April 2, 2019
Lee’s recent tweet came as a reminder the HODLing makes sense for those investing in BTC. In the last few days the flagship cryptocurrency has been seeing its price rise significantly, so much so it’s up 41.3% in the last 30 days, according to CryptoCompare data.
What’s behind BTC’s price surge is unclear, although some analysts believe various factors could be involved. The cryptocurrency last month saw a ‘golden cross’, and Fidelity Investments is reportedly going to “buy and sell” the crypto for institutional clients in the next few weeks, showing technicals are improving, as well as adoption.
Tom Lee is a notable bitcoin bull as he’s made various bullish predictions regarding the cryptocurrency’s future price. Last year, he predicted it would hit $25,000 by the end of 2018, and that it would hit $91,000 by March of 2020.