With 2017 nearly at its close, cryptocurrency Bitcoin is still making headlines with its ever-changing price. Starting the year at a respectable $800, the cryptocurrency hit new heights near the end of 2017 when it briefly crossed the $20,000 after hitting numerous milestones along the way. Bitcoin has since dipped to around the $15,000 mark as of Christmas, which for many has reaffirmed fears that the cryptocurrency craze is nothing more than a dangerous bubble simply waiting to burst. Still, others are significantly more optimistic.
Tom Lee, cofounder of Fundstrat Global Advisors, LLC, is giving the cryptocurrency much needed support from the world of Wall Street. While popular among tech-savvy Millennial investors, cryptocurrency as a whole has struggled to find legitimacy like that held by more traditional investments. This is despite the recent release of Bitcoin futures, which first appeared on the Chicago Board Options Exchange and were later offered by the CME Group. The offering was pioneered by brothers Tyler and Cameron Winklevoss, famous for their connection to social media giant Facebook. Still, the offering of Bitcoin futures seems to have done little to halt the concerns of more traditional investors.
That said, Fundstrat’s Tom Lee is predicted a lucrative new year for the unpredictable cryptocurrency. Lee spoke with Bloomberg and revealed his predictions for Bitcoin’s 2018 potential, allaying the fears of those who have already bought into the hype and perhaps offering fresh incentive for those investors that have chosen to remain on the sidelines thus far. Lee speculated that Bitcoin in 2018 will once again reach the $20,000 mark, likely by the middle of the year. Lee revised his initial prediction which set the cryptocurrency at $11,500 for the new year. According to Lee, Bitcoin’s recent drop to around $10,4000, which amounted to about 47 percent from its highest point this year, is the product of a “parabolic/speculative surge,” which the investor deemed “unhealthy.”
More interestingly, Lee sees the cryptocurrency hitting the $25,000 by 2022. Lee is the most notable market strategist to lend his Wall Street credibility to Bitcoin by issuing reports focused on predicting its price. From 2007 to 2014 and prior to founding Fundstrat, Lee worked with J.P. Morgan Chase as the chief equity strategist. While he only represents one perspective, the weight Lee’s opinion rightfully carries certainly lends credibility to Bitcoin, though whether his predictions for both 2018 and 2022 will bear out remains to be seen.
Dil Bole Oberoi
