Tom Lee gives 3 reasons why bitcoin will hit the $ 25,000 level
Fundstrat Global Advisors co-founder Tom Lee does not abandon his forecasts and expects bitcoin to rise to $ 25,000, the analyst said in a conversation with CNBC this Wednesday, while the cryptocurrency rate fell below $ 8,000.
According to him, the latest decline in the market is due to “typical volatility of cryptocurrencies.” As an argument for his bullish prediction, he pointed to 3 key factors.
The first factor is the cost of issuing bitcoin. On Tuesday’s Futures Now show, when Bitcoin was worth about $ 8,000, Lee said the cryptocurrency was “trading at actual cost.” On Wednesday, the analyst said that the cost of issuing bitcoin is about $ 6,000, that is, significantly lower than the price of cryptocurrency on the market..
Among other factors that could cause further growth in Bitcoin, Lee mentions the arrival of institutional investors who still do not have the opportunity to freely interact with the cryptocurrency industry..
“I think institutional investors are very interested in this market, but they have not yet entered cryptocurrencies due to regulatory uncertainties. But their access to cryptocurrencies as an asset class will ultimately be a powerful driver for Bitcoin’s growth, ”he said..
Finally, Lee cites Fundstrat’s historical data analysis, which also suggests that investors should hold cryptocurrency..
“Historically, all Bitcoin price results for a given year fall within 10 days. If we exclude these 10 days, we find that Bitcoin falls by 25% every year. No matter how sad it is to keep Bitcoin at $ 8,000, the leap from $ 8,000 to $ 25,000 will happen in a few days “.
Earlier, another Fundstrat analyst, Sam Doctor, published the results of his analysis, following which he came to the conclusion that the bitcoin rate in 2019 could rise to $ 36,000 or even $ 64,000.