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.

Bakkt Raises Additional $300 Million Despite Current State of Crypto Market

Siamak Masnavi

On Monday (March 16), Bakkt, the crypto custodian and Bitcoin derivatives exchange subsidiary of Intercontinental Exchange (ICE), announced that it had raised an additional $300 million of capital -- via series B financing -- from such prominent investors as venture capital firm M12 (formerly Microsoft Ventures), management consulting firm Boston Consulting Group, and crypto-focused investment firm Pantera Capital.

In the blog post published earlier today, Bakkt CEO Mike Blandina said that other investors participating in this series B round included Intercontinental Exchange, PayU, Goldfinch Partners, and CMT Digital.

He also talked about that Bakkt's view of digital assets includes "things as diverse as loyalty and rewards points, in-game assets, merchant stored value, and cryptocurrencies," and that these digital assets "represent nearly $1 trillion in consumer spending power."   

What Bakkt intends to do is to make it easier for users to have control over their digital assets:

"Whether it’s miles from your favorite airline, loyalty points from the local grocery store, or bitcoin you’ve purchased, the Bakkt app enables you to aggregate all of these assets into a single digital wallet. In just a few taps you can use those assets to shop at your favorite merchants, send them to family and friends, or convert them to cash...

"Bakkt is now a team of 350 employees and powers the loyalty redemption programs for 7 of the top 10 financial institutions and over 4,500 loyalty and incentive programs including two of the largest US airlines."

This will be done via the Bakkt mobile app, which is being released this summer. 

Featured Image Courtesy of Bakkt