At the moment, Bitcoin is experiencing not the best period in its history. The cryptocurrency fell below $8,000 and at the press time it is traded at $7,396.05 as it is informed by CoinMarketCap.
Such a figure shows us that Bitcoin has lost 6.29% of its price during the last 24-hour period. Bitcoin price has decreased to the levels that we haven’t seen since the middle of April.
Nevertheless, the well-known bitcoin bull, Co-founder and Managing Partner of Fundstrat Global Advisors Tom Lee still believes that he was quite right predicting Bitcoin price of $25,000 for 2018.
He confirmed his predictions despite the fact that Bitcoin has recently lost practically all of the gains that it has made since mid-April. These recent changes in Bitcoin prices Lee explained by typical crypto volatility that is quite natural for this type of assets.
Many other top cryptocurrencies also have lost in their prices in spite of the fact that many experts predicted growth of their values following a row of recent major blockchain events in New York City.
Some analysts believe that these negative trends may be a result of recent regulatory news. On Monday, financial authorities in the U.S., Canada and China announced a crackdown on initial coin offerings and other cryptocurrency investment schemes as well as necessity to enhance fraud preventive measures.
Nevertheless, Tom Lee still remains true to his predictions that we have previously mentioned on CoinSpeaker. According to his predictions, Bitcoin will reach a $25,000 mark in 2018. Moreover, Lee determined several factors that will contribute to pushing the coin up to new highs this year.
The most important factor that that will boost the crypto space in Lee’s opinion is the growing activity of institutional investors.
“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”, explained Lee.
Moreover, historical data from Fundstrat also can add some optimistic mood: “Historically, 10 days comprise all the performance in any single year of bitcoin’s price.If you just took out those 10 days, bitcoin’s down 25 percent a year.”
“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,” he added.
Though many investors are likely to believe Lee, recently he has committed a mistake predicting a 70% surge for Bitcoin around the Consensus Conference that took place last week. Nevertheless, as CoinSpeaker has previously informed, he admitted his mistake and attributed it to a greater need for regulatory clarity.
At the same time while the crypto community is actively discussing Bitcoin price, one of the 10 world’s largest stock exchanges based on the value of the companies listed on it Deutsche Boerse has announced its plans to introduce cryptocurrency-related products and go in for crypto trading.
Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.
Beijing is gradually reducing its stocks of US Treasury bonds, in which it actively invested. China has reduced its assets by $88 billion over the past 14 months. Instead, Beijing continues to expand its purchases of gold.
After last week’s correction below $8700 levels, Bitcoin price has entered a consolidation phase with next support at $8500. Despite the bearish signals, analysts remain confident of the long-term bull run.