Bitcoin Bull Tom Lee Sticking to his $25k Prediction

Avi Rosten
  • The well-known bitcoin bull is still standing by his predictions for BTC, seeing the coin hit $25k in 2018
  • Identifying several factors that will push the price up - Lee sees increasing institutional investmtent as crucial

Tom Lee, Co-founder and Managing Partner of Fundstrat Global Advisors is doubling down on his bullish bitcoin predictions for 2018 despite the recent slump.

In an email to CNBC, the well-known bitcoin bull said that despite the cryptocurrency recently losing nearly all of the gains it has made since mid-April, he still sees the coin hitting his previously predicted high of $25,000 for 2018.

BTC today dropped below the $8,000 mark for the first time in over a month and is trading at the time of writing at $7529 according to CryptoCompare - a 41% drop for the year.

Lee however, attributes this latest drop purely to “typical crypto volatility” and identified several factors that he sees pushing the coin up to new highs in 2018.

The biggest factor in his opinion is the increasing involvement of institutional investors in the crypto space.

Talking to CNBC’s “Futures Now” yesterday, Lee commented:

"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."

Tom Lee

Moreover, historical data from Fundstrat he says corroborate his optimistic outlook:

"Historically, 10 days comprise all the performance in any single year of bitcoin's price," he said. "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."

Tom Lee

While Lee’s latest remarks were confidently bullish, the influential figure made a notable error of judgement recently when he incorrectly predicted a 70% surge for bitcoin around the Consensus Conference of last week - a mistake he later attributed to a greater need for regulatory clarity.

Harry Potter Author J.K. Rowling Wants to Learn About Bitcoin

Siamak Masnavi

On Friday (May 15), J.K. Rowling, the author of the Harry Potter fantasy series, asked Coindesk reporter Leigh Cuen to explain Bitcoin to her.

It all started when Cuen took to Twitter to say that the "most bullish signal" she had seen all week was that a female "mainstream novelist" had asked her about Bitcoin:

Marvin Ammori, a consultant for HBO show "Silicon Valeey" then replied to Cuen to say that his favorite author was Rowling.

Cuen then replied to Ammori joking telling him that she would "die" from happiness if she got pinged by Rowling:

This promoted Rowling to reply to both Cuen and Ammori to say that she wanted to learn about Bitcoin:

Naturally, this tweet by Rowling brought a huge amount of joy to the crypto community (with over 4,400 likes for Rowling's tweet, as of 20:00 UTC on May 15), several prominent members of which took the time to reply to Rowling to explain Bitcoin to her.

One of the most detailed explanations was by Vitalik Buterin, who is the co-creator of Ethereum:

This was Cuen's own explanation: