Fundstrat’s Thomas Lee is still very optimistic about the future price of bitcoin, as he made absolutely clear in his recent CNBC Futures Now interview. In other words, his prediction of bitcoin reaching $25000 in the nearest future still stands.
After Bitcoin surrendered a critical $8000 mark, many investors started to lose confidence. The price at the time of writing fluctuates around $7500, which is a new low for this year. However, Lee writes this off on “typical crypto volatility”, naming a number of trends which eventually will lead to a surge in price, similar to the one we witnessed in 2017.
Lee acknowledged that the present market condition is “pretty scary for folks”, but he emphasized that the idea of blockchain is gaining more recognition than ever. According to the pundit, the bitcoin is now trading at a price which roughly equals the price of its production. Gold, in contrast, trades at double its extraction cost. This could mean that we should expect the eventual increase in bitcoin’s price.
Another factor which can lift Bitcoin up is the coming of institutional investors. Lee explained:
“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.”
Lee expressed his belief that once the regulatory framework in place, a bitcoin rally is bound to happen. He proceeded to remind that with Bitcoin, a year’s worth of growth happens in a couple of weeks. He commented:
“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.”