Fundstrat’s Thomas Lee: “Bitcoin Price Reversal is Imminent Due to Two Key Catalytic Factors”
As most crypto enthusiasts and investors already know, 2018 wasn't a particularly good year for Bitcoin. Not only did the world’s premier digital asset stoop to record lows, the digital currency market as a whole too displayed signs of sliding investor confidence.
However, according to perennial crypto bull, Tom Lee, the future of Bitcoin looks good irrespective of its present market state. In an interview with Bloomberg, Lee stated that as long as BTC finds support near the $6,000 region, the asset will continue to push in an upward direction— particularly because the currency is being positively influenced of two key catalytic factors.
According to Lee, the two core catalysts that will drive BTC’s value higher in the coming weeks are:
- The ever “strengthening infrastructure” of the cryptocurrency exchange market.
- FOMO (fear of missing out) amongst institutional investors.
Elaborating further on his stance, Lee added :
“$6,000 is a level that is more important than we realized. Earlier this year, we were pointing $6,000 as breakeven for Bitcoin mining so that level should hold. The fact Bitcoin is holding here is very good news. I think there are catalysts in the year end so I think despite the lower highs we’ve seen I think we’re starting to reverse,”
Bakkt Promises To Be A Gamechanger
The past few months have been extremely eventful for the cryptocurrency sector, especially since it was announced a few months back that ICE (Intercontinental Exchange) along with multinationals such as Starbucks, and Microsoft, was building the world’s first regulation-focused crypto platform called ‘Bakkt’. The central goal of this new entity is to operate as a custodian and broker for large-scale alt-coin investors.
Via the introduction of Bakkt, Lee believes that established financial institutions will be able to make inroads into this burgeoning space and thus allow it to grow even further in the years to come.
However, much like Mike Novogratz, the founder of Galaxy Digital, Lee too believes that institutional money will only begin to flow in once BTC is able to break certain resistance levels, such as the $8,800 and $10,000 thresholds.
Talking about Bakkt, Lee was noted as saying
“I think there are a few positive drivers for BTC. One, this new exchange called ICE Bakkt will be launched. It is going to be really one of the first regulated exchanges. I think around that, there is working being done by these major investment banks to build products to support it or work with it. I think institutions are waiting to be involved”.
Lee has never been one to shy away from making bold predictions when it comes to Bitcoin. For example, earlier in May, he said that BTC was primed to touch the $25K price point by the end of this year. While this prediction is becoming increasingly difficult to take seriously, Lee still believes that the world’s largest cryptocurrency by total market capitalization will gain “massive financial traction” in the days and weeks to come.