Tom Lee told Anthony Scaramucci on Friday that timing Bitcoin (CRYPTO: BTC) is a losing game, given nearly all of its annual gains come from a tiny handful of trading days.
Why Timing Bitcoin Is Nearly Impossible To Get Right Lee said Bitcoin has delivered the best compounded annual return of any asset over the past 10 to 15 years, but that performance hides a brutal truth underneath it.
Strip out the 10 best trading days each year, and an investor's return flips to negative 27% annually instead.
The same pattern holds in traditional markets.
Lee said the S&P 500 (NYSE:SPY) has compounded at roughly 9% a year since 1929, but missing its 10 best days each year drops that return to negative territory, with those 10 days averaging a 2,100 basis point swing in performance.
