Tom Lee Maintains Bitcoin $15K Forecast Despite Bear Market

Tom Lee, the co-founder of Fundstrat Global, has again backed down its earlier price prediction for bitcoin. He thinks that the drop in the stock market is related directly with bitcoin’s price low. The key for this forecast to hold is the entrance of institutional money into the cryptocurrency market. This will increase the demand of assets and ultimately drive the price up.

Tom Lee Does it Again

Tom Lee Maintains Bitcoin $15K Forecast Despite Bear Market

Tom Lee has declared that he still thinks that bitcoin will reach $15K at year’s end. This despite the impressive drop that the cryptocurrency market has faced these days. To him, one of the most important things that are dragging the price down is the tech stock bear market. Tech is intricately related to cryptocurrencies because people that invest in tech stocks are also likely to invest in cryptocurrencies.
So these investors might be getting out of their positions out of fear, a thing that is affecting both markets in the same way. Also, the precarious state of the bitcoin price is also the product of the bitcoin cash hard fork that managed to get a lot of money out of the cryptocurrency system due to fears.
However, Tom Lee thinks that the next wave of adoption is institutional and these institutions will be attracted to the market by new startups.

Institutional Money To Save Bitcoin

Tom Lee thinks that the demand for bitcoin will ramp up with institutions getting into the business. The entrance door for institutions will be services like Bakkt, that will offer a physically backed futures market settled daily. But even he recognizes that regulation must also accompany this process.

Tom Lee Maintains Bitcoin $15K Forecast Despite Bear Market

With clear regulations, institutions will be more comfortable opening positions in cryptocurrencies. Tom Lee thinks that institutions like the SEC are already taking steps in the right way. He stated that:

“The first step would be for regulators to sanction non-compliant exchanges and institutions, and i think that is taking place”

Bitcoin Is The Future

To him, bitcoin and cryptocurrencies are still in the nascent stages compared with other payment industries like Visa or Paypal. However, bitcoin has already surpassed PayPal in the total amount of money moved. He also recognized that maintaining the bitcoin network is getting increasingly expensive each year.
Despite this, he believes that if bitcoin is classified as a commodity, its fair value should be around the break-even price that is near the $7K currently.

Related posts
cryptocurrencyDOGEdogecoinDOGEUSDElon MuskNewstesla

Dogecoin Blows Hot As ‘Dogefather’ Elon Musk Considers Making DOGE A Payment Option At Tesla

Dogecoin was expected to race to the moon after Elon Musk’s SNL performance, but the asset took the bearish route and dipped until nearly 40% of its value was lost. The crypto went from a high of $0.73 to a…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTMarketsNewsxbtusd

The Bitcoin Bull Run Is Far From Over – Here’s What’s Following

Bitcoin entered the month of May above $50,000 but has been range-bound below the $60,000 price mark since the 18th of April. Bitcoin hit a daily high of $59,464 on Sunday, this is the highest price the leading cryptocurrency has…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTETFNewsxbtusd

Bitcoin May Never Go Below $50k Once An ETF Is Approved, Declares On-Chain Analyst

Bitcoin may never drop below $50k asserts on-chain analyst Ki-Young Ju. But as usual, there are conditions that follow this possibility. In a tweet, Ju analyzed that Bitcoin could follow the same path that gold took in 2004 when the first…