Even in the aftermath of last week, Bitcoin Bull Tom Lee is still forecasting a strong year for the cryptocurrency. After making initial forecasts for the price of BTC (and other cryptocurrencies) to shoot up after “Blockchain Week,” the markets slumped. Though his initial price prediction proved wrong, he still thinks this year is going to be a big one for Bitcoin. Yes, the cryptocurrency took a price hit, butTom Lee remains bullish on BTC.
Tom Lee and ‘Blockchain Week’
For those not already familiar with what happened, last week marked one of the largest events for crypto in the US. Dubbed “Blockchain Week,” the event is a large meeting of everyone in the blockchain/crypto world. The main event for the week is “Consensus,” which spread over three days in New York City.
As with many past years, the crypto community usually anticipates a price increase after the event. However, this year proved to be significantly different. After witnessing a nearly $45 million loss in total market capitalization in one week, Tom Lee realized his prediction was wrong.
Before ‘Blockchain Week,’ Tom Lee made public price predictions about the bump he was anticipating from the meetup. In early May, Lee made highly optimistic predictions for bitcoin saying that:
“We expect the Consensus rally to be even larger than past years…Bottom line: we expect BTC and cryptocurrencies to behave similarly to prior years and rally during Consensus.”
At one point, the price of BTC dipped below $8,000 during the week. It looks like Lee was wrong. (At time of publishing, BTC is recovering and trading at $8,374.31.)
Who is Tom Lee?
Tom Lee is a partner and the head of research for Fundstrat Global Advisors. Lee and the firm have made a name for themselves as advisors by including digital assets in their investment approach. Currently, he’s best known for many of his bullish comments on bitcoin in recent months.
Still Bullish in 2018
Now that Consensus has finished, Tom Lee is still just as bullish on BTC. He talked about some of the possible explanations for why the markets didn’t react accordingly during the week. Though there are many factors to consider, some of the largest contributing ones, in his opinion, are on regulation.
Without a clear idea of what regulatory concerns and practices the crypto world will have to abide by, it’s difficult to generate strong interest from institutional investors. However, Lee still wrote that:
“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.”
Tom Lee still holds to his bullish predictions for the year. Even after the market capitalization loss from the week, Lee anticipates bitcoin to be at $25,000 by the end of 2018. How bullish are you?