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.

Bitcoin-Only Brokerage Seeing Huge Demand From 'Bitcoin Boomers'

Siamak Masnavi

Bitcoin-only crypto brokerage River Financial Inc., which is based in San Francisco, has raised $5.7 million in a seed funding round led by Polychain Capital after seeing rapid growth in its number of clients this year thanks to a large part by baby boomer investors.

River Financial, which was founded in October 2019 by Alexander Leishman (Chief Executive Officer) and Andrew Benson (Chief Operating Officer), launched its Bitcoin investment service (for both private clients and institutions) on 16 December 2019.

Leishman said back then that they had "built a platform exclusively for Bitcoin investors." 

This is the reason he gave for his startup not supporting investing in any cryptoassets other than Bitcoin:

"For economic and technical reasons, we believe that Bitcoin is the only cryptocurrency on a trajectory to become a global currency."

Leishman also explained in his December 2019 blog post that his company's platform was "not built for traders" and instead was aimed at long-term investors.

One interesting feature of River Financial's platform was support for withdrawal/deposit of Bitcoin via the Lightning Network.

Yesterday (June 17), the River Financial CEO announced via another blog post that his company had completed a $5.7 million seed fundraising round led by Polychain Capital, with participation also by Slow Ventures, Castle Island Ventures, DG Lab Fund, Cygni Capital, Pfeffer Capital Ltd, IDEO CoLab Ventures, and various angel investors, one of which was Steve Lee, Product Manager at Jack Dorsey's Square Crypto.

According to Leishman, River Financial operates in 19 U.S. states, has 13 full-time employees, and thousands of happy clients.

He also says that their volume "has grown an average of 80% month over month" since their launch in December 2019.

Bloomberg reported yesterday that the rapid growth in River Financial's client base had been "fueled" by what the company calls "Bitcoin Boomers" (i.e. "new cryptocurrency investors over the age of 55").  

Bloomberg's report went on to say that the River Financial CEO said in a statement:

"The surging activity we’ve seen since the beginning of 2020 has been in part inspired by the Federal Reserve’s unprecedented monetary intervention."

This report also mentioned that according to River Financial, since March, "Bitcoin Boomers have accounted for 77% of River Financial’s volume growth." 

River Financial's Private Client service is aimed at multi-generational families, ultra high-net-worth individuals (UHNWI), and family offices. The benefits of this white-glove service include having a designated private client advisor as well as instant liquidity ("no need to wait for funds to settle, buy up to $10,000,000 of Bitcoin immediately"). 

Yesterday, one of River Financial's clients, serial entrepreneur Avichal Garg, who is a co-founder of crypto-focused early stage venture firm Electric Capital, posted this tweet to say how impressed he was with River Financial's super cute and friendly "new customer on boarding":

 

Featured Image Courtesy of River Financial Inc.