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.

Bitfury-backed Wallet Lets Users Send Lightning Network Payments Without Running a Full-Node

The creators of the Bitfury-backed Lightning Peach wallet, which supports cryptocurrency transactions conducted through the Lightning Network (LN), a layer-two payment solution for expediting digital asset transfers, have released several important updates for their open-source software.

Peach wallet’s non-custodial (meaning does not hold users’ private keys) desktop and mobile versions now feature an “extended” and “standard” mode. These options allow users to access a user-friendly and intuitive interface.

Difference Between The Standard And Extended Interface

While operating in the standard mode, users can independently set up their own Lightning node and “all actions performed [by the user] in the application can only be seen by” them, Lightning Peach’s official blog post explains. In this mode, users can perform basic LN-based transactions such as “paying an invoice,” the blog notes.

As part of the feature set for Lightning Peach’s extended mode, “payments without a user-generated Lightning invoice” can be made and set to “streaming” and/or “recurring.” These transfers can be performed by selecting the recipient(s) from an imported a contacts list. Currently, these features are only accessible to Peach network users, however the platform’s development team is working on creating a solution that allows external users to use the app as well.

Semi-Centralized Service

As noted in Lightning Peach’s blog, “all actions must be routed through” Peach’s servers which “connect directly to other users.” “To process these requests,” the the Peach servers must have access to the IP address of the wallet that is initiating the transfer. The company’s servers also need the users’ public key so that they can settle the transactions. However, other financial data such as the “payment amount or payment messages” has reportedly been “end-to-end encrypted” to maintain user privacy and security.

Desktop compatible versions of the Lightning Peach wallet have a “built-in lightning node (lnd) that is launched in initial setup.” This effectively “lowers the technical barrier to entry” which can help onboard new LN users, Lightning Peach’s blog states. New users are not required to set up their own LN node - which is fairly technical process. But smartphone users must set up their own node.

According to Lightning Peach, “it is not yet feasible to run a full node on mobile-only,” which is why the development team has not added the feature to mobile phones for now.

Getting Quick Feedback From Users

Peach wallet users have the option of allowing Lightning Peach developers to view their usage statistics in an “anonymized” manner. As explained, this feature can be enabled by selecting a checkbox within the app, however it is “disabled by default for user security and privacy.”