Tom Lee – who has been making big bets on the upside potential of Bitcoin price, is standing by his prediction that BTC will soar to $25K by the end of the year. Bitcoin price today, however, retreated below $8K yesterday and is trading around $7,300 today.
Source Image: coinmarketcap.com
Technical analysts are forecasting the bearish trend will extend its momentum while trend makers and business icons are also presenting a bleak outlook for the entire cryptocurrency market.
Does Tom Lee’s Claim Make Sense?
Cryptocurrencies are the most volatile asset in the world, at least in this era. This is because everything is a possibility in this market; crypto coins have created such major rallies in the past, including last year’s rally – when Bitcoin price rose from $1,000 to $20,000.
At the moment, however, the market is much more mature and traders are closely inspecting all the pros and cons of digital currencies. Regulator interference and bans from several countries have also wiped off the illegal trading volume – which accounted for almost half of the trading volume during last years bull-run.
Tom Lee has totally based his price bet on speculation that institutional investors will push prices higher later in the year.
He said, “I think institutional investors have gained a lot of interest, and they haven’t really come into crypto yet because there is still some regulatory uncertainty. But that sort of ultimate allocation into crypto as an asset class is going to be a powerful reason why bitcoin rallies.”
Source Image: twitter.com
Market reaction to Tom Lee’s claims was mixed. Some are going against his bet while others are optimistic about the future upside potential. Tom Lee, however, didn’t express his thoughts regarding Bitcoin’s potential to work as viable currency. He also didn’t speak about the “fair value” concept.
Featured Image: Twitter