Part 7/12:
He suggests that the ongoing deleveraging was a normal market cleansing process, and that the timeline to full recovery aligns with the typical 7-8 week washout period observed in previous cycles. Lee remains confident that Bitcoin can reach new highs by late January, driven by an expected dovish shift in Fed policy and increased liquidity.
He notes that Bitcoin's recent price action is not indicative of a broken market but rather part of a normal cycle—one where technological resilience persists despite volatility. Lee also highlights the importance of a dovish Fed, as easy monetary policy tends to boost riskier assets like cryptocurrencies by increasing available capital and decreasing the attractiveness of fixed income investments.