Tom Lee: “Bitcoin Will Double by Mid-year”
Tom Lee, Managing Partner and the Head of Research at Fundstrat Global Advisors, sees the cryptocurrency market recovering by the end of March. In a report released Wednesday, the Wall Street veteran predicted that “Bitcoin will double by mid-year”, as first cited by CNBC.
— Thomas Lee (@fundstrat) February 28, 2018
Cryptocurrency Market to Recover by end of March
With regards to the cryptocurrency market in general, Lee sees positive developments and announcements as factors that should be catalysts to growth this year. “In 2018, we forecast at least 3 major publicly-traded corporations to issue native digital tokens,” Lee said. “Already three major companies have announced efforts within crypto-currencies, which demonstrate that corporations may be moving towards crypto-currencies before Wall Street has embraced them.” He cited news such as the Japanese e-commerce company Rakuten launching the Rakuten Coin, as an example of positive developments that should serve as tailwinds for the market.
Other examples include:
- Goldman Sachs-backed Circle buying US-exchange Poloniex
- Japanese messaging app Line announcing a new division called Line Financial that would let users exchange digital currencies
- Starbucks’ Executive Chairman Howard Schultz hinting about the company’s intention to use blockchain technology for a consumer payments application.
Lee’s Bitcoin Price Prediction: $20,000 by June
Lee sees “the large sell-off in Bitcoin and others at the start of the year was an overshoot to the downside.” Bitcoin (BTC), which started the year at prices above $17,500 on January 6th, was down to about $6,115 by February 6th, according to data provider CoinMarketCap.com; down 65% in price. However, prices have begun recovering now, with the broader cryptocurrency market stabilizing through February and Bitcoin being traded at above $10,000 consistently through the second half of the month. Lee’s price prediction for Bitcoin (BTC) stands at $20,000 by June, with a year-end target of $25,000.
Other predictions made by Wall Street’s Tom Lee include:
- Facebook (FB) would likely announce a crypto-strategy this year
- Amazon (AMZN) could apply a similar strategy