Co-founder of Fundstrat Global Advisors, Tom Lee does not abandon his forecasts and expects bitcoin to grow to $ 25,000. The analyst said this in a conversation with CNBC.
According to him, the latest decline in the market is explained by "typical volatility of the crypto-currency". As an argument for his bullish forecast, he pointed to 3 key factors.
The first factor is the cost of issuing bitcoin. On Tuesday, on the air of the "Futures Now" broadcast, when bitcoin cost about $ 8,000, Lee said that the cryptocurrency "is traded at the level of actual costs". On Wednesday, the analyst said that the cost of issuing bitcoin is about $ 6,000, that is significantly lower than the price of the cryptocurrency in the market.
Among other factors that may cause further growth of bitcoin, Lee mentions the arrival of institutional investors who still do not have the opportunity to interact freely with the crypto-currency industry.
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.
Finally, Lee refers to an analysis of historical data conducted by Fundstrat, which also suggests that investors should keep the Crypto currency.
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.
Earlier, another analyst at Fundstrat Sam, Doctor, published the results of his analysis, which led him to conclude that the rate of bitcoin in 2019 could rise to $ 36,000 or even $ 64,000.