Bitcoin has lost a significant amount of its value since the bull run in 2017, but that doesn’t mean that many investors and crypto-enthusiasts aren’t excited about the future of cryptocurrency and the many catalysts that are soon to come.
That would include Tom Lee, the co-founder of Fundstrat Global Advisors, who has been bullish on cryptocurrency in general for a while, and specifically bitcoin – even declaring that he believed it would hit $20,000 before the end of the year.
Institutions Want In
Mr. Lee elaborated that he believed the $6000 level for bitcoin was more important than many in the cryptocurrency community previously believed. He also pointed out its significance in terms of crypto mining, considering that it was a “break-even” point for many miners. He thus said that the fact that this support is holding is important.
He then spoke on catalysts that he believes wil help push bitcoin to higher levels. He first referenced the launch of Bakkt by the Intercontinental Exchange, which he believes will help see the flow of institutional money into bitcoin, considering the fact that it will be closely regulated, as opposed to many other cryptocurrency exchanges.
A Different Take
A common criticism of cryptocurrency markets in general is that it is too volatile, a sentiment that has been echoed by everyone from lawmakers to business executives. Lee actually takes a different take on the subject, arguing that institutions will be interested in bitcoin precisely BECAUSE of its volatility, as this will offer many profit opportunities.
He even stated that FOMO, or fear of missing out, might factor in when bitcoin does rise, which will also help drive the bitcoin price up even further, as institutions might want to stock up on the digital currency because they know that it can reach new highs. FOMO certainly factored into the bull run in late 2017, where retail investors were taking out loans and even mortgages to purchase the digital currency.
Tom Lee has been well-respected on Wall Street for some time now and is recognized for the accuracy of his long-term predictions. He is widely known as a bullish strategist, and has been considered on the “right side” of the market since the bull market began in 2009.
The recent report from Fundstrat is no exception, as an August report from the firm pointed out the importance of the key level of support of $6000 – and the cryptocurrency markets seem to have confirmed this level as significant, as well.