Will bitcoin double its current price by mid-2018? That’s the sentiment held by some analysts, including co-founder of Fundstrat Global Advisers Tom Lee.
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Trying Hard to Push Forward
For the past two months, bitcoin has been undergoing a nasty struggle. Following its rise to record numbers in 2017, the father of cryptocurrency took a turn for the worse in early 2018 with the cryptoeconomy’s acute plunge. At press time, bitcoin is trading for approximately $10,400 USD, though this is small beans compared to where it stood last December.
But Lee thinks that’s all about to change. In a recent interview, the Wall Street investor suggests that the massive sell-offs incurred by bitcoin at the beginning of the year were something of a fluke, and that blockchain businesses are still looking to exploit the technology behind the currency.
One example includes the Japanese e-commerce company Rakuten, who announced just days ago that it would be launching a new digital asset known as “Rakuten Coin” in the coming months.
“The announcement by Rakuten is another example of positive developments in crypto in 2018, suggesting the large sell-off in bitcoin and others at the start of the year was an overshoot to the downside,” Lee explains.
People Still Love Their Blockchain
As the only major “Wall Street strategist to issue formal price targets on bitcoin,” Lee believes BTC will soon hit its previously-held position of $20,000 by the time summer rolls around, but he doesn’t stop there. He also suggests bitcoin could very well strike the $25,000 mark or beyond by the time we’re ready to ring in 2019.
Lee says that the first two calendar months of each year are typically hard on bitcoin, and that what occurred in January is nothing strange:
“In six of the last seven years, bitcoin posted its annual low within the first 60 days, before March. In 2018, bitcoin was down 50 percent by February sixth (36 days), which falls within that time frame. In other words, as we enter March, this is another reason to view $5,900 as the low for the year.”
Ready to Rise?
Additionally, he suggests ongoing news in the blockchain space is bound to keep bitcoin traveling north over the next ten months.
“In 2018, we forecast at least three major publicly-traded corporations to issue native digital tokens,” Lee states. “Already, three major companies have announced efforts within cryptocurrencies, which demonstrate that corporations may be moving towards cryptocurrencies before Wall Street has embraced them.”
The three enterprises Lee is talking about include Line – a Japanese messaging app that announced in February it would allow users to exchange digital currencies; Starbucks, which has mentioned the possibility of using blockchain technology to enhance its payment systems, and, of course, Rakuten.
Will bitcoin hit $20,000 sometime soon? Post your comments below.
Images via Business Insider, Krypto Money