The market might be in the red, but if you have been in this crypto-verse since December, you know it will go back to being green in a matter of a few days. Perhaps this is why Fundstrat’s CEO, Thomas Lee, is still sticking to his guns with his prediction of seeing a $25,000 Bitcoin (BTC) by the end of the year.
Mr. Lee highlighted the attendance of the Consensus event back in May as an indicator of increased interest in blockchain technology as well as cryptocurrencies. Mr. Lee was quoted as saying:
“The notion of blockchain as a way to solve trust in the digital world has gained a lot of traction, especially out of Consensus. And what investors aren’t connecting is that you can’t necessarily just say ‘I believe in the blockchain.’ Bitcoin and cryptocurrencies are essential to how blockchains operate in the security.”
Mr. Lee went on to give 3 reasons as to why Bitcoin will reach the $25,000 mark. The reasons were:
- The cost of producing and replicating Bitcoin is almost equivalent to the current trading levels of the coin. This means that it will not deviate lower than the levels we are seeing now
- Institutional investors are keen on the industry and are possibly waiting to make an entry every day, albeit with uncertainty due to the lack of direction by regulators. Once this is cleared up, they will buy in quick
- Fundstrat, the firm he runs, has collected and compiled historical data about the prices and trends of Bitcoin that back his bold statements of a $25,000 price by the end of the year
However, the crypto-verse is currently experiencing some uncertainty after a flash crash left many traders baffled early Sunday morning. Even the price prediction by Mr. Lee might sound a bit skeptical this week.
Several theories have emerged with respect to the flash crash that occurred early Sunday morning in the crypto markets. One theory that has turned out to be true, is that popular South Korean exchange, CoinRail, was hacked. Estimates of the cost of the cyber ‘looting’ have been put at $40 Million worth of crypto. But the major blow came when the crypto-markets responded to the news. What then proceeded is a massive sell-off that managed to wipe out close to $20 Billion in the total crypto-market value in a time frame that was a few hours.
A second theory to the current market turmoil has been well elaborated by John McAfee via twitter when he said:
“Do not panic about the drop in Bitcoin’s price. It is an overreaction to the news that Bitstamp, Coinbase, itBit, and Kraken are being investigated for price manipulation. This will delay the bull market by no more than 30 days. Don’t buy into the fear. Buy the coins.”
In conclusion, there is only one thing to do: and that is to remain calm as the markets find a footing once again.
HODL!
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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