In an interview with CNBC’s “fast money”, last week Friday, Tom Lee, one of the top guys in the crypto industry, also co-founder of Fundstrat Global Advisors, still stood his ground on his previously predicted $20,000 Price for bitcoin, by the end of this year.
Lee claims that he was tempted to change the calender year linked to this prediction but there is still great possibilities that it will definitely come to pass, despite the fact that its current price is no where near the predicted price.
He also claimed that Hedge Funds will contribute to the fulfillment of his prediction because of the bigger role being played by the Hedge fund firms in the bitcoin market.
In his short but meaningful speech, one can clearly depict what Lee is talking about.
I do think in 2018, trading has shifted. There is now more bitcoin trading in the U.S. as certain exchanges have attracted hedge funds. So, I strongly believe that hedge funds are playing a role right now.
Apart from Hedge Fund’s active participation towards the fulfillment of Lee’s prediction, he also pointed out another factor that will also act as a driving force on the price of bitcoin. And that is, the impact of traditional stocks on bitcoin’s price.
Backing this point up, Lee presented a chart showing the relationship between bitcoin price and the S&P 500 index. As the emerging markets rallied at the end of 2017, bitcoin’s price soared. Since then, both indicators have sharply declined.
This looks like a goodnews to every investors and crypto enthusiasts out there, but fact still remains that no one can really tell what will happen in the future. In as much as we are expecting his predictions to come to fruition, we should also be expecting the bad side of it, so when the bad side happens, it will not have much effect on us. Only time will tell.