Ceo of Fundstrat, Tom Lee is still stuck at his earlier prediction that Bitcoin will reach $ 25,000 by this year-end. This in spite of the current underperformance of Bitcoin. In 2018, Bitcoin has witnessed one of the most significant falls in history. It is fallen all the way from $ 20,000 to just $ 7500.
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Normal volatility:
However, according to Tom Lee, this is normal cryptocurrency volatility. According to Tom Lee, investors need to hold Bitcoins for a longer period of time. Instead of just cashing out on a 10 day winning streak or selling on a 10 day losing streak, they need to hold it for a longer period of time. He further added that the actual move from 8000 to 25,000 will happen in a very short period of time. This is when investors need to hold Bitcoin.
Regulations hampering the growth of Bitcoin:
Earlier predictions of Tom Lee have also failed. His earlier prediction after NY Consensus could not be reached. Regulations are the main obstacle in the growth of Bitcoin. As a result, the volatility in the cryptocurrency is also increasing. Most of the Bulls are apprehensive about the regulations which are being enacted as well.
Mining costs:
According to Tom Lee, the cost of Bitcoin cannot be less than the mining costs. As a result, Bitcoin will eventually increase. Even though in the shorter period of time it can move to below mining costs but in a longer period of time, it will rise higher.
Institutional investors:
He further added that are quite a few institutional investors who are on the fence and once regulatory hurdles are cleared, these will start buying Bitcoins.
Bullish on Bitcoin behavior:
He added that the main gains in Bitcoin in each and every year come in just 10 days. That is why he’s expecting the same this year as well.
Clearly, he still is of the opinion that Bitcoin can rise to $ 25,000 by the end of this year. It remains to be seen whether his target is achieved by the end of this year or whether Bitcoin will languish near the lower levels at the end of this year. If indeed his targets are achieved by the end of this year, Bitcoin would have tripled from the current prices. As a result, his prediction solely seems very bullish as compared to the existing prices of Bitcoin.
