The contradiction brought by the sell-side perspective: CryptoQuant's CEO points out the gap between Tom Lee's bullishness and caution

CryptoQuant CEO, Ki Young Ju, made an interesting observation. He pointed out that the investment stance of cryptocurrency analyst Tom Lee is heavily influenced by the perspective of sell-side (research from the seller’s side). According to reports from PANews, in mid-December, he detailed Tom Lee’s position management strategy, drawing industry attention.

A Fully Bullish Analysis Style

In Ki Young Ju’s analysis, Tom Lee is known as a typical bullish investor. Usually, his long and short positions are maintained at a ratio of about 10 to 0, indicating an overwhelmingly long bias. When market sentiment remains bullish and consistent, this ratio tends to persist.

However, in situations where market correction is deemed unavoidable, he temporarily strengthens risk management and adjusts the ratio to about 9 to 1. In other words, he adopts a strategy of incorporating slight short positions to show consideration for downside risk.

The Conflict of Stance Caused by Sell-Side Research Constraints

Ki Young Ju points out that these subtle shifts in stance are a result of the inherent nature of sell-side research. Sell-side analysts often present bullish outlooks based on the assumption of rising markets. Tom Lee’s unwavering long posture is likely due to this professional background. At the same time, he probably also has to make cautious position adjustments to respond to market realities.

Discrepancy Between Internal Reports and Public Statements

According to previous reports, an internal research report created by Tom Lee’s fund indicated that, contrary to his public claim of reaching new highs at the end of January, BTC and ETH could experience significant corrections. This reveals a notable gap between the publicly available sell-side stance and the fund’s internal, more realistic analysis.

This divergence highlights the fundamental challenge of sell-side research. The conflict between the role of delivering optimistic messages to the market and making actual investment decisions is reflected in Tom Lee’s position management strategy.