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.

Morgan Creek Capital CEO Mark Yusko Calls Bitcoin 'Schmuck Insurance'

Michael LaVere
  • Morgan Creek Capital CEO Mark Yusko calls bitcoin a "chaos hedge" or "schmuck insurance."
  • Recommended that investors look at long-term trends for BTC over daily price volatility.

Mark Yusko, CEO of Morgan Creek Capital, appeared on CNBC’s Fast Money program Aug. 14 where he referred to bitcoin as a “chaos hedge,” before elaborating that it was “schmuck insurance.”

Schmuck Insurance

Yusko made his comments in the broader context of cautioning investors against dwelling over the daily price movements for BTC, which have continued to exhibit price volatility throughout 2019. 

Yusko was asked his opinion on the correlation between bitcoin and growing economic turmoil. As posed by the host of the program, bitcoin’s price has continued to drop throughout the month of August, despite anticipation for a global economic downturn increasing. 

The investment CEO explained that monitoring daily price movement for bitcoin was missing the point of the asset as a “store of value.” Instead, he called BTC a “chaos hedge, or schmuck insurance as I like to call it.”

He continued, 

“You want to have 1, 2, 3, 5% of your net worth in this asset as a hedge, against all the problems that we see in the fiat markets and the equity markets.”

Yusko emphasized that investors in bitcoin should look at long-term trends and view buying BTC as owning a piece of the broader network.