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.

Bitcoin Is a 'Bet Against the Ruling Class' Says Billionaire Venture Capitalist

Michael LaVere
  • Billionaire venture capitalist Chamath Palihapitiya called bitcoin a "bet against the ruling class."
  • The Social Capital CEO recommended all investors allocate one percent of their portfolio to BTC as insurance against economic collapse. 

The Canadian-American billionaire Chamath Palihapitiya called bitcoin insurance against a potential economic catastrophe. 

Speaking in an interview on the Unchained Podcast, Palihapitiya recommended investors allocate 1% of their portfolio to bitcoin as a hedge against a greater financial collapse. Palihapitiya, founder and chief executive officer of the venture capitalist firm Social Capital, warned against governments making bad monetary decisions that would ultimately impact the common person. 

He said, 

Bitcoin, to me, is the only thing that I’ve seen so far that is really fundamentally uncorrelated to that decision-making process and to that decision-making body.

Palihapitiya continued, calling bitcoin a “bet against the ruling class in some ways” and recommended investors make sure they have a “small amount of insurance.” 

The venture capitalist predicted bitcoin’s success would result in “massive, massive asymmetric payoffs” in the event of broader economic collapse. However, he warned the context of bitcoin’s success would be in catastrophe. 

He said, 

If your Bitcoin bet pays off, it will be cataclysmically destructive for the world. And that’ll have enormous consequences to many people we all know and care about who weren’t hedged in Bitcoin. And so you almost don’t want it to happen.

Featured Image Credit: Photo via Pixabay.com