If you want to find out when the Bitcoin slump will end, look at the emerging markets.
The iShares MSCI Emerging Markets Index ETF has fallen by about 8 percent so far this year. It's painful, but not so much as the epic bitcoin sell-off.
Bitcoin's spending spree came to a virtual standstill shortly after reaching a record $ 20,000 last December. Since then, the cryptocurrency has dropped 65 percent. It is now in the $ 6,000 since 8 August.
Lee claims that hedge funds do not buy risk when the emerging markets sell out. Recent trading activity suggests that they are not buying Bitcoin.
But this bearish trend could soon end.
Lee, who owns Bitcoin and is one of the largest bulls on Wall Street, sees the tide change in favor of both market sectors – especially as the dollar weakens and the Federal Reserve slows down its rate hike policy. He also stresses that there is a lot of money and firepower in the cryptocurrency space.
These factors could help Bitcoin climb to $ 25,000 as 2018 breaks to Lee.
"I still think it's possible," Lee said. "Bitcoin could end the year explosively higher."