Co-founder of Fundstrat Global Advisors and a popular personality in the crypto industry, Tom Lee still believes that the crash in the world of crypto will not affect bitcoin’s price and is firm on his prediction that the cryptocurrency will end the year at a price worth $15,000, expressed in an interview.
Bitcoin’s price was well recorded until the crypto market took a fall causing prices to go down and damages to investors. However, Tom Lee still holds the opinion that the market crash won’t do much harm to bitcoin’s price and that the token will have a fair market price by the end of the year despite the market setback.
Mr. Lee thinks that the world of crypto is populated with two types of people, one of these two kinds is operating in different cryptocurrencies and has its own wallets and then there are those people who hold investments but are not regular users, these people are more like spectators who look at the ups and downs of prices and opportunities in the market. He says that in order to protect investors from suffering damages caused by these crashes, both types of people need to help out each other and interact more.
Shedding light on the issue, Mr. Lee agrees that the market crash has negatively affected the developments in the industry which caused certain limitations for investors and operators. However, he is still assured that the market crash would not cause much harm to the already established cryptocurrencies due to their reputation in the market.
The downfall in the market has forced bitcoin’s price to go down as much as worth $4,237 as of now but the first ever cryptocurrency is expected to make a positive comeback in the market and according to Tom Lee, it will end the year at a growing price of $15,000. Optimistic but why not?
There are two factors which may contribute in uplifting the crypto market, prompting interests due to the following two reasons:
- Intercontinental Exchange (ICE) announced the launch of a global network for digital assets, Bakkt by the global exchange operator, New York Stock Exchange’s (NYSE). The official launch of Bakkt is expected to be on the 24th of January, 2019.
- The revision of regulations of the cryptocurrency industry are still under examination by the British government and financial regulators which may give rise to the crypto market again. Mr. Lee also said:
Once we have that [regulatory clarity], I think, institutions will feel more comfortable in making bets.
He believes that after new reforms are formulated, investors might feel more protected in making their investments and the blockchain world will have a more secured ambiance. Also claiming that the bitcoin token might be seen as more of a commodity than a valuable asset due to its image as an “emerging asset class”.
The massive downfall in the crypto industry forced Tom Lee to lower his expectations of the bitcoin token and he shifted his prediction of bitcoin’s year end worth from $25,000 to $15,000 in the previous week as bitcoin hit its lowest for the year. Earlier this year, Mr. Lee made predictions of the cryptocurrency above the worth of $20,000 as bitcoin was high in demand and had earned huge reputation in the market and when the price of the cryptocurrency was recorded at $9,000, he claimed that the bitcoin is currently sold at a bargain price, labeling it as “the biggest buying opportunity in 2018”.
Moreover, global organizations have urged the investing institutions to take more part in the crypto industry in order for them to realize the maximum potential of the crypto market. This will give an uplift to the industry and regain the values of the cryptocurrencies, including BTC.
Therefore, Tom Lee’s prediction on bitcoin’s price increase is not just an optimistic opinion but is derived from certain possibilities that can help it grow. If these expectations are met, chances are the industry could go upwards again, regaining values of the crypto assets and thus, encouraging more participation.