Bitcoin Bull Tom Lee Sticking to his $25k Prediction

Bitcoin Bull Tom Lee Sticking to his $25k Prediction

Avi Rosten
  • 23 May 2018
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  • 1434 views
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  • In #Bitcoin
  • 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.

CFTC Wants to Learn More About Ether (ETH) and Its Use on the Ethereum Network

CFTC Wants to Learn More About Ether (ETH) and Its Use on the Ethereum Network
Siamak Masnavi

On Tuesday (11 December 2018), the U.S. Commodity Futures Trading Commission (CFTC) issued a "Request for Input" (RFI) on "Crypto-asset Mechanics and Markets". More specifically, the CFTC is "seeking public comment and feedback in order to better inform the Commission’s understanding of the technology, mechanics, and markets for virtual currencies beyond Bitcoin, namely Ether and its use on the Ethereum Network."

According to its press release, the CFTC is expecting that these comments, all of which must be received by 60 days from the date of publication of the RFI in the Federal Register, "will benefit LabCFTC, the CFTC’s FinTech initiative, and help to inform the Commission’s understanding of these emerging technologies." The Commission says that it wants this public feedback for advancement of oversight of the commodity futures markets and for regulatory policy development. It also says that the feedback will "advance the CFTC’s mission of ensuring the integrity of the derivatives markets as well as monitoring and reducing systemic risk by enhancing legal certainty in the markets." Comments may be submitted via the CFTC website, regular mail, or hand/courier delivery.

In addition to general feedback, the CFTC is hoping for answers to 25 questions across the following categories:

  • "Purpose and Functionality"
  • "Technology"
  • "Governance"
  • "Markets, Oversight and Regulation"
  • "Cyber Security and Custody"

Here are a few of the more interesting questions:

"Are there any existing or developing commercial enterprises that are using Ether to power economic transactions? If so, how is Ether recorded for accounting purposes in a comprehensive set of financial statements?"

"Does the Ethereum Network face scalability challenges? If so, please describe such challenges and any potential solutions. What analyses or data sources could be used to assess concerns regarding the scalability of the underlying Ethereum Network, and in particular, concerns about the network’s ability to support the growth and adoption of additional smart contracts?"

"Relative to a proof of work consensus mechanism does proof of stake have particular vulnerabilities, challenges, or features that make it prone to manipulation? In responding consider, for example, that under a proof of stake consensus mechanism, the chance of validating a block may be proportional to staked wealth."

"How would the introduction of derivative contracts on Ether potentially change or modify the incentive structures that underlie a proof of stake consensus model?"

The following question is especially interesting (see if you can spot anything wrong with the question):

"In light of Ether’s origins as an outgrowth from the Ethereum Classic blockchain, are there potential issues that could make Ether’s underlying blockchain vulnerable to future hard forks or splintering?"

 

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