Tom Lee, Fundstrat co-founder and strategist is bullish on Bitcoin. The cryptocurrency suffered a major setback after reaching an all-time high of $19,000 in December 2017. Lee hasn’t lost his faith in the currency, expecting it to as high as $20,000 by June. He also suggests that prices could be as high as $25,000 by the end of the year.
In a report by Fundstrat dated Feb 28., Lee writes that at least three publicly traded corporations could show support for the crypto markets by launching their own currencies. He said, “Already three major companies have announced efforts within cryptocurrencies, which demonstrate that corporations may be moving towards cryptocurrencies before Wall Street has embraced them.”
After suffering a huge market correction, Bitcoin prices fell below $10,000 mark within days. However, Lee mentioned in early January 2018 that the prices could ‘double’ in 2018.
He said, “We think that by mid-2018, we’re going to be part of the way there, and that’s why we get Bitcoin to $20,000. If Bitcoin can actually rise close to that level in the first half of this year, I think in the second half of 2018, we’ll see a move bigger than that. So, I think Bitcoin is still something you should own.”
The foray of corporations in this space could help in jumping up the valuation for BTC and other cryptocurrencies. The future upswing is supported by Rakuten, the Japanese e-commerce giant that will be launching its Rakuten Coin. In fact, a wide array of companies has looked very optimistic about BTC, despite the disappointing price drop. Another popular Japanese messaging app Line announced its in-app crypto trading and crypto exchange this January.
Fundstrat’s reports also suggest that major tech companies could implement blockchains, the underlying technology of cryptocurrencies. If this happens, it could give a big boost to the digital currency space. Amazon, Facebook and Starbucks are some of the biggest names in this list. In fact, Chinese e-commerce bigwigs Alibaba and JD.com have already started experimenting with blockchain in logistics.
CNBC suggests that Lee is the only major Wall Street strategist who issues BTC price targets formally. He says that sharp price drops mean that investors should avoid alt-coins till March at least, but hold on tight to BTC. A millennial workforce could be behind this shift. They are using BTC as a store of value and an alternative to gold. If even 5% of the gold market is captured, BTC could reach $50,000 easily.
He has detailed his speculations for the big companies extensively. He believes that Starbucks could be launching its own payments app after the executive chairman hinted at such a development recently. He also believes that Facebook could even launch an ICO, coupled with an IPO, if it goes public.
If Lee’s predictions are true, then the $20,000 mark is not too far for Bitcoin. In fact, he has remained consistently bullish on the currency for years now. In 2017, he predicted that Bitcoin could go up to $6,000 by the end of 2017. However, his predictions were surpassed by a massive 230 percent when prices reached an all-time high at $19,000.