Bitcoin is still unable to make a recovery after losing over 50% of its value, after reaching over $19,000 at the end of 2017. Investors are trying to figure out if it might be time for them to sell their Bitcoin portfolios, and Tom Lee is here to advise. Lee claims that Bitcoin will soon bounce back, and advises investors to hold on to their coins.
Tom Lee’s Opinion On Bitcoin’s Future
Tom Lee, often called the “Wall Street Bull,” appeared on CNBC this week to talk about his views on the current situation of the world’s most popular cryptocurrency: Bitcoin. Tom is already known to be a Bitcoin enthusiast, and he has shared his opinions about Bitcoin on numerous occasions previously. Lee’s views about investing in a Bitcoin portfolio stayed positive, even at the time when the coin’s price plummeted from over $19,000 to under $7,000 in just two months from December 2017 to February 2018.
In his appearance on the CNBC show, Tom addresses the current issue Bitcoin is facing. Many investors who own a Bitcoin portfolio are considering selling now. They are afraid that the coin’s price may drop below $6,000, and that it won’t be able to make a comeback at that point.
Tom explained that even though Bitcoin has experienced a significant reduction in value, there is no need for panic. In his interview, he pointed to the fact that the price of Bitcoin might have fallen a lot, but over the last couple of months, the price has been relatively stable, not falling below $6,000 and not rising above $9,000.
Bitcoin Is Not Broken
During his interview, Tom also mentioned the fact that recent movements in the financial industry hold proof that this coin will not “break.”
Those who have negative views or fear of Bitcoin have one common reason for their concerns: the fact cryptocurrency is still an unregulated market. However, new advancements in this industry are closing in on making this a regulated industry.
Earlier this year, a Federal Judge in the United States pointed out that Bitcoin and with other cryptocurrencies are like commodities. They hold real value for people. In the same statement, the judge explained that the CFTC could effectively regulate these digital assets.
Another recent event that Tom pointed to is the fact that the ICE (Intercontinental Exchange), the parent company of the well-known New York Stock Exchange, has also shown interest in the cryptocurrency world. This news was only announced last week but has already sparked conversations and debates worldwide. The new company that will be launched by the ICE will provide a regulated platform for transacting with Bitcoin. The company is called Bakkt.
Several companies have already joined forces with this new venture from the ICE. Starbucks, for example, will be the first to implement the company’s platform to help consumers pay for a cup of Starbucks coffee with their Bitcoin. Microsoft is another noteworthy name connected to the current partnerships of the Bakkt platform.
Even though Bitcoin was first viewed by some as a way for those on the wrong side of the law to transact anonymously on the internet, the currency has grown a lot and is no longer viewed in such a way. One recent report showed that only 10% of all Bitcoin-related transactions can now be linked to criminal activities, which means that the coin is now used for more legitimate activities than ever before.
Even though Bitcoin has now almost dropped to the $6,000 line several times, Tom Lee thinks that there is no need for investors and Bitcoin holders to panic. Lee has reported that his belief that Bitcoin will reach $25,000 soon still stands strong and that we will see the price of the coin rise again very soon.