At the start of the year, many cryptocurrency enthusiasts were full of hope that the market turn around could make them join the league of crypto millionaires.
But the general performance of the market at this time shows that the market is below its performance same time last year, even as one of the top voices in the cryptocurrency industry, Tom Lee, the head of research at Fundstrat Global Advisors said at the beginning of the year that Bitcoin could hit $25,000 by year-end after he apprised an “aggressive” buying of the coin with the highest market capitalization.
Last week, Tom Lee reversed his position and said that Bitcoin could hit $15,000 by the end of this year.
Considering that the present performance of Bitcoin shows that this was its level 14 months ago after it started picking up around July last year, Tom Lee in an interview with CNBC reaffirmed that his new stance on Bitcoin value by year-end stands.
Many analysts had previously posited a possible comeback for Bitcoin which the present trading level of the coin could only sure a high volatility to the negative side which was also compounded by the disagreements that followed the creation of Bitcoin Cash hard forks before it was successfully created last week.
In the interview, Tom Lee said that Bitcoin:
I) “not necessarily a value-asset.”
2) “is a commodity.”
3) can be classified as an “emerging asset class.”
4) at this point can not take as a “currency”.
In continuation, Tom Lee stated that due to the inadequate synergy between the major players in the crypto market, the market is burning. He added that the players are those that are there to gain from the speculative nature of the market and those that use crypto and owns crypto wallets.
Tom Lee added that going by the performance of the market this month which is in an adverse growth and has led to a downside of the momentum in the market, but that the major investors are this point are “not necessarily getting hurt”.
Tom added that a market rebound should be expected soon due to the role of institutional investments that will lead to a “new wave of adoption.”
Lee concluded by stating that the highly expected launch of Bakkt, by Jan next year and the clarification of regulatory oversight are components that will be used to drive this expected adoption by institutional investments since crypto firms “will feel more comfortable in making bets”.
