Fundstrat’s analyst Tom Lee does not refuse from his forecasts and expects bitcoin to grow to $ 25,000. The analyst said this in an interview with CNBC this Wednesday, while the Bitcoin falls below $8.000.
According to Tom Lee, the latest decline in the cryptocurrency market is explained by “typical crypto volatility”. As an argument for his bullish forecast, he pointed to 3 key factors that make him believe that Bitcoin will reach $25.000.
The first factor is the cost of producing and replicating bitcoin. On Tuesday, on the “Futures Now” broadcast, when bitcoin cost about $ 8.000, Lee said that the cryptocurrency is trading at the level of actual costs. On Wednesday, the analyst said that the cost of producing bitcoin is about $ 6.000, that is significantly lower than the price of Bitcoin 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 enter the crypto-currency market.
“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,” he said on CNBC’s “Futures Now.” “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 made by Fundstrat, which also suggests that investors should hold cryptocurrency.
“Historically, 10 days comprise all the performance in any single year of bitcoin’s price,” Tom Lee stated. “If you just took out those 10 days, bitcoin’s down 25 percent a year.”
Meanwhile, today, May 24, Bitcoin, like the market as a whole, continues to decline. So, at the moment, bitcoin is trading near the $ 7.300 mark. Although only a few weeks ago, its price was steadily approaching the $ 10.000 mark.
According to experts, soon bitcoin could return to the $ 7.000 mark, at which it was traded back in early April.
The most liquid altcoins continue to fall. The total market cap is currently $ 321 billion.