(Seoul=Yonhap Infomax) Yong Wook Kwon – Cryptocurrencies are acting as a leading indicator for US equities, according to Tom Lee, Head of Research at Fundstrat Global Advisors.


Speaking to CNBC on the 20th (local time), Lee stated, "Cryptocurrency asset prices may experience further declines, which could also weigh on the stock market, but I remain optimistic about a long-term rebound."


He added, "The cryptocurrency market has struggled since October 10, and I believe it serves as a leading indicator for equities in terms of weakened liquidity."


Bitcoin prices have fallen steadily since surpassing $126,000 in early October, with the bearish trend spreading to other crypto assets beyond Bitcoin.


Nevertheless, Lee expressed expectations for a near-term recovery in cryptocurrency asset prices.


"Looking at Bitcoin over the past few years, it has recovered after corrections, and the pace of recovery from the bottom has been faster than the decline," Lee reflected.


He continued, "This has occurred after every downturn in crypto assets, due to the significant pent-up energy in the market. While some investors are currently engaging in panic selling, buyers remain patient."


ywkwon@yna.co.kr


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