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.

US Copyright Office Didn't Recognize Craig Wright as Satoshi Nakamoto

Craig Steven Wright, a prominent Australian computer scientist and self-proclaimed inventor of Bitcoin (BTC), the world’s most dominant cryptocurrency, had submitted a claim to the US Copyright Office.

In his claim application, Wright requested recognition as the original author of the seminal Bitcoin whitepaper. He also filed a claim in which he requested being granted copyright registration for developing most of the early versions of the source code released for implementing the Bitcoin blockchain.

US Copyright Office Only Records Claim Applications

Although the US Copyright Office does accept claim applications, it’s not authorized or responsible for recognizing copyright registrations. In other words, the Copyright Office only maintains a record of all the copyright applications filed. As reported, Wright claimed that he had been recognized by the US Copyright Office for being the inventor of Bitcoin and the author of the cryptocurrency’s whitepaper.

According to the Financial Times, a spokesperson representing Wright stated that “the registrations issued by the US Copyright Office recognize Wright as the author — under the pseudonym Satoshi Nakamoto — of both the whitepaper and code.” The spokesperson has also claimed that the Copyright Office was the first governmental department to have formally recognized Wright for being the inventor of the pseudonymous cryptocurrency.

Copyright Office Does Not Investigate Claims

Reports claiming US officials received confirmation that Wright is actually Satoshi Nakamoto, the pseudonymous creator of Bitcoin, are as such questionable as the Copyright Office does not conduct an investigation to determine whether a particular claim is valid (or not).

In statements shared with the Financial Times, the US Copyright Office clarified: 

In a case in which a work is registered under a pseudonym, the Copyright Office does not investigate whether there is a provable connection between the claimant and the pseudonymous author.

Officials at the Copyright Office also confirmed that registering the Bitcoin source code with the organization does not, in any way, protect the intellectual property (IP) of the Bitcoin protocol as an invention.

Moreover, the Copyright Office may cancel, or void, a registration application if it believes, or has sufficient proof, that a particular claim is inaccurate or false.