Fundstrat’s Tom Lee said he remains bullish on bitcoin. He bets on a recovery soon despite prices falling to more than one-year lows.
- “Days like this, it does make me wonder” about my prediction, says Lee. But he stands by his recently cut $15,000 year-end target.
Tom Lee, the co-founder of Fundstrat and Bitcoin bull, has remained confident in his belief that Bitcoin price will surge to as high as $15,000 by the end of 2018. Lee told CNBC in an interview that although Bitcoin had a tough month, it was about to stage a trend reversal and rally strongly.
Encourages interaction within the Crypto Community
Tom Lee recently stressed that the crypto community consists of two categories of people. The first category is made up of Speculators. The other class involves people who use and stores cryptos in wallets, therefore, the Hodlers or Early investors who have deep knowledge of the market cycles. Therefore, he suggested that the two groups “should interact with each other”. This way, crypto investors won’t feel the pinch of crypto market crashes.
Institutional investors the least affected
While the former J.P. Morgan Chief Equity Strategist is betting on a recovery, he admitted that the current state of crypto markets pale when compared to their last year’s glories. At $4,400, the price of the largest cryptocurrency by market capitalization is down about 80% from its record high.
Nevertheless, Wall Street’s bull thinks institutional investors are the least affected by the recent market crashes. Even as the prices of the top 10 digital assets declined by more than 10 percent. At the time of writing, Bitcoin is trading at $4535 while Ethereum is trading at $133.
Regulatory clarity to push Institutional interest
Lee is of the opinion that various factors will soon trigger institutional interest in digital assets. One of these factors, according to him, is the imminent launch of Bakkt by New York Stock Exchange (NYSE). Another factor is “regulatory clarity.”
Mike Novogratz, another Bitcoin Bull, and former banker, also believes that the launch of Fidelity Digital Assets and Bakkt will catalyze the next bitcoin rally.
In October, Fidelity Investment announced the launch of Fidelity Digital Assets that will provide institutional-grade custody solutions. So far Fidelity Investments and NYSE are among the few large companies that have openly signaled their interest in cryptocurrencies.
Many more Bitcoin hedge funds, Possibly ETFs and Futures Contracts are coming up. Bakkt will surely set the stage for everything Institutional.