Tom Lee remains optimistic, maintains $15,000 BTC prediction
The cryptocurrency market plummeted to its lowest levels since late September last year, but that hasn’t deterred Tom Lee, head of research at Fundstrat Global Advisors. In a CNBC interview on Tuesday, he reaffirmed his prediction that top crypto Bitcoin [BTC] would hit $15,000 by the end of the year.
Bitcoin has breached several support levels and is now languishing under $4,500, anchoring a freefall that began last week prior to the Bitcoin Cash hard fork. The highly contested hard fork had dampened market sentiment since the start of this month.
He stated that Bitcoin is “not necessarily a value-asset”, adding that the top crypto is still seen as a “commodity”, but it can be an “emerging asset class”. He conceded that at this point, Bitcoin cannot be viewed as a “currency”.
He also identified two types of cryptocurrency players – those who are all in and are “using it and have wallets in crypto” and those who are in it for quick speculative gains from a volatile market. He pointed out that the two types of players should interact with each other to build rather than burn the market.
Given the November market collapse, Lee maintained that there has been “negative development” in the market which has caused a “downside of the momentum”, but the investors at this time are “not necessarily getting hurt”. He predicted that institutional investment will cause a “new wave of adoption” and push the market back up.
Adding to the increase in adoption, Lee specifies two major proponents of the same.
According to Lee, a major event that will drive widespread adoption is the highly-anticipated launch of Bakkt, a digital assets platform by exchange operator Intercontinental Exchange (ICE). The launch is slated for January 24, 2019.
Another factor that will boost adoption is the clarification of regulatory oversight. Lee stated that this clarification is “underway now” and with it, cryptocurrency companies “will feel more comfortable in making bets”.
Last week, Lee had slashed his year-end Bitcoin forecast from $25,000 to $15,000. Earlier this year, he had advised “aggressive” buying, back when he expected the coin to hit $25,000 by the end of the year.
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