‘Bitcoin Bull’ Tom Lee reiterates prediction
Cryptocurrency expert Tom Lee, aka the “Bitcoin Bull,” has reinforced his prediction for the world’s top cryptocurrency.
The Bitcoin Bull says that values for BTC will soar from $8000 to $25,000 in “just a handful of days.”
On Wednesday, Bitcoin dropped below $8,000 and is currently trading at just over $7,500, according to the live price charts.
The largest digital asset by market cap has shed most of the gains it had made from mid-April to early May following 2018 lows.
But, according to the Bitcoin Bull, the week’s drop is purely down to “typical crypto volatility.”
Speaking to CNBC, Mr. Lee of Fundstrat Global Advisors says he also identifies three key factors that prove Bitcoin will soon hit $25,000.
Bitcoin Bull predictions
Lee says the first indicator is the cost of producing and replicating Bitcoin.
Lee appeared on CNBC’s “Futures Now” on Tuesday when Bitcoin was trading at $8000.
He explains that the digital currency is actually “trading at cost” due to the price of production being around that amount.
Despite the fall in values, Lee told CNBC that the cost of producing Bitcoin on Wednesday was around $6,000.
In Lee’s eyes, Bitcoin is still worth more than its cost of production for miners.
But Mr. Lee says its the flood of institutional investors that will be the big catalyst to boost the crypto space.
Speaking on CNBC’s “Futures Now,” the Bitcoin Bull predicts a coming rally, saying:
“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.”
And lastly, data compiled by Lee’s firm, Fundstrat, shows a historical trend that is encouraging investors to hold onto Bitcoin.
“Historically, 10 days comprise all the performance in any single year of bitcoin’s price,” he explains, adding:
“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.”