Fundstrat Global co-founder Tom Lee is holding firm on his predicted end-of-year Bitcoin price of $25,000, despite the crypto-market suffering a mini-meltdown that has seen $50 billion wiped from its combined market value, and Bitcoin hurtle toward the $7,000 mark.
Bitcoin might be swaying and staggering like a boxer on the ropes right now, but one leading market analyst/strategist isn’t convinced it will hit the deck, never mind lose the fight. In fact, this crypto expert believes that Bitcoin will come from behind and rally strongly to the extent of finishing the year at an all-time high value.
Tom Lee, co-founder of sector research and market strategy gurus Fundstrat Global, believes that the current crypto market drop is an indication that “Bitcoin is underappreciated.” On Wednesday, Bitcoin sank below $8,000 and was trading at $7,500, giving up most of the gains it had had made from mid-April to early May after a slow start to 2018.
Tom Lee On CNBC
Tom Lee made clear his opinions in an interview yesterday on CNBC. Longtime Bitcoin-Bull, Lee has regularly appeared on CNBC, and always pumped up the chances of his favorite crypto, and Wednesday’s appearance was no different. On this occasion, Lee not only had to try and explain Bitcoin’s recent slump despite getting close to a now-mythical $10,000 valuation, but also to defend his stance that BTC will still finish the year at a price of $25,000.
Even though last week’s Consensus Conference didn’t quite stimulate the crypto market in the way everyone thought, Lee believes that the fact that 8,500 people turned up for an event that attracted 3000 the year before shows that there is a strong interest in the blockchain, which Lee believes shows that the crypto market is resonating. On CNBC Wednesday, Lee said:
“The notion of blockchain as a way to solve trust in the digital world has gained a lot of traction, especially out of consensus. And what investors aren’t connecting is that you can’t necessarily just say ‘I believe in the blockchain.’ Bitcoin and cryptocurrencies are essential to how blockchains operate in the security.”
And on the subject of Bitcoin finishing the year with a $25,000 valuation, Lee said:
“Historically, 10 days comprise all the performance in any single year of bitcoin’s price. If you just took out those 10 days, bitcoin’s down 25 percent a year. So as miserable as it feels holding bitcoin at $8,000, the move from $8,000 to $25,000 will happen in a handful of days.”