Renowned cryptocurrency analyst Tom Lee’s short-term market forecast may have failed, but he’s sticking his guns on his bullish long-term prediction despite some minor setback. If anything, Lee stands by his forecast for a $25,000 BTC price by the end of the year.
A Quick Recap
Lee placed a great deal of hype during last week’s Consensus conference, saying that a combination of “sanity check” among market participants that blockchain innovation isn’t slowing down together with “new interest” should have sparked market gains. However, the broader cryptocurrency market took a turn for the worse by shedding about 10% of its market value. Lee told CNBC in an interview: “Clearly, we were too optimistic”.
Lee’s market predictions, until recently, have been unfolding like clockwork, including the tax-selling pressure weighing on the bitcoin price in the first three months of 2018. But, maybe putting hope on any conference was too high an expectation, despite the strong turnout.
Last week’s blockchain festival was a single event that definitely drew attention to the market among newcomers. However an event’s success doesn’t automatically translate to investments or that investors should make sudden decisions to invest. At most, people are likely to be doing more research on cryptocurrencies now that the market is on their radar and that they have gained a better understanding of it.
What Tom Lee failed to factor in, however, was the investor’s reservation to enter a market with a murky regulatory record. It’s not that Lee expected a fully regulated framework by Consensus, but he admitted in an interview with CNBC that the regulatory angel was somewhat negative.
“Crypto still faces significant internal resistance and hurdles within traditional financial institutions. But it is encouraging, nonetheless, that a large share of incremental attendance are financial institutions,” he said.
Sticking with His Forecast
Lee is definitely standing by his forecast of $25,000 price for bitcoin by the end of the year saying, “We have to keep in mind…Bitcoin at $8,000 and bitcoin at $25,000…it doesn’t require bitcoin to go up every day till the end of the year.”