- Tom Lee admits its prediction of Bitcoin rally after the Consensus conference was incorrect.
- He yet predicted that the price of Bitcoin would soar as high as $25,000 towards the end of this year.
Tom Lee, the Co-founder and head of research at Fundstrat Global Advisors, has declared that his recent prediction of a Bitcoin rally after the Consensus conference was wrong. He claimed that the cryptocurrency market still “faces significant internal resistance and hurdles within traditional financial institutions.”
Tom who correctly predicted the growth of cryptocurrency markets after the US Tax Day in April, made another prediction on 7th May that Bitcoin would rally during and after the Consensus conference, which took place in NYC on 14th – 16th May. Lee stated then:
“We expect BTC and cryptocurrencies to behave similarly to prior years and rally during Consensus.”
Tom Lee, in a report to his clients last Friday, stated that his earlier prediction was based on such factors as the coming together of cryptocurrency community in a “centralized place,” as well as the “growth in attendance.” These factors were expected to positively affect the price of Bitcoin as well as “strengthen the crypto-community’s conviction.”
Tom tweeted on Friday 18th May confirming the fact that Bitcoin markets have rather lost up to 10% during the Consensus, though the number of participants was about 8,700, which is “more than a tripling of attendance in the prior year.”
CRYPTO: #Consensus2018 rally did not happen, very disappointing. What we needed was a trifecta of progress: (i) institutional custody/tools; (ii) buy-in by banks/investment managers; (iii) regulatory clarity (3 of 3 needed), but we got progress on (i) and (ii). Full text below pic.twitter.com/XcqNhgYgK7
— Thomas Lee (@fundstrat) May 18, 2018
According to Tom Lee suggestion, the cryptocurrency industry needs a “trifecta of progress” in the form of regulatory clarity, support from banks, and institutional tools. He said:
“Crypto still faces significant internal resistance and hurdles within traditional financial institutions… But it is encouraging, nonetheless, that a large share of incremental attendance is financial institutions.”
According to report, Tom Lee still believes that the price of Bitcoin would soar as high as $25,000 towards the end of this year. Cryptona.co earlier reported Tom’s prediction that the price of Bitcoin would be $36,000 towards the end of 2019, “based on the historical average 1.8x P/BE multiple.”