Market Drop Presents Buying Opportunity, Claims Tom Lee
Tom Lee from Fundstrat Research suggests that the recent market plunge and NVIDIA's significant loss might be an overreaction and a chance for investors to buy in.
On January 28, 2025, NVIDIA experienced its largest single-day market cap loss, affecting the markets drastically. Tom Lee from Fundstrat Research commented that Monday’s market sell-off was an overreaction, especially noting the double-digit losses seen by NVIDIA (NVDA), which dropped 17% and lost $465 billion in market cap according to Bloomberg Data.
Lee expressed on CNBC:
“Markets don’t like uncertainty; to me, it’s an overreaction, and this overreaction will be a great opportunity for investors.”
As markets responded, Nasdaq futures rose by 1% following the sell-off.
Lee pointed out that following the drop, Bitcoin (BTC) saw its price fall to around $97,500 but has since recovered to above $103,000.
In addition, he noted a healthy market structure within U.S. equities, asserting that Bitcoin has outperformed the small-cap stocks and financial sector this year. As a Federal Reserve policy meeting approaches, uncertainty persists regarding interest rate hikes scheduled for 2025.
