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.

Danish Courts Rule Nordea Bank Can Prevent Employees From Investing in Bitcoin

  • Danish courts have ruled in favor of Nordea Bank restricting employees from investing in crypto in their free time.
  • Nordea argued that employees could damage the reputation of the bank and its clients. 

Nordea Bank can legally prevent its employees from trading bitcoin and other cryptocurrencies following a ruling by the Danish courts. 

According to a verdict, Nordea is free to prevent employees from investing in bitcoin due to the risks associated with cryptocurrency.

Denmark’s union for financial industry employees had originally filed a suit against the bank, following a memo circulated in January 2018 warning employees that “the risks were too high” to trade in crypto. Nordea justified its ban by saying that the crypto markets were unregulated and linked to criminal activity, including money laundering. Nordea claimed that employees could damage the reputation of the bank and its clients by investing in bitcoin, even in their own time. 

Kent Petersen, the union’s chairman, said of the bank's decision, 

We filed suit because of the principle that everyone obviously has a private life and the right to act as a private individual.

He continued, 

It was important for us and our members to establish what rights managers have. In this case, it was more far-reaching than what we find to be appropriate.

Despite the union’s efforts, Danish courts upheld Nordea’s restriction of employees trading crypto in their free time. The ruling does not apply to crypto-assets that were acquired prior to the ban. 

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