On July 24th, Fundstrat’s Head of Research, Thomas Lee was featured on CNBC Futures Money for his opinion on the recently charged bull-run by Bitcoin. The market strategy expert discussed the Bitcoin year-end price target, emerging possibilities from the regulators’ end and the institutional investors’ next move in the wake of an ETF.
On being asked if the $20,000 days were approaching, Lee implied that the Bitcoin is on to a gradual rise till it peaks at $25,000 [according to the current speculations]. In a foreseeable future, technical aspects of the market will matter.
The researcher shared that a probable involvement from the institutional investors, due to ETF and other such options, might be here to fix Bitcoin in an all-time high position. Regarding the ambiguous nature of the regulatory authorities and anonymous regulatory risks in the future, Lee said:
“I think once we hold 8k people also have their sights on something like 10k. But I think the bigger picture is that the narrative of BTC looked narrative for a few months because there were regulatory clampdowns and people thought that the protocol was broken, people were losing interest. But now I think we’re sort of seeing potential institutional participation again… The potential for an ETF and this is going to help Bitcoin break back to an all-time high.”
He clarified that the regulators are not directly conveying an active trading of Bitcoin among the masses, by allowing an ETF. Although the market is beginning to discern the fact that the regulatory scrutinies have been focused on ICOs, platforms tokens and suchlike; point in case is that these entities are designed to fit into securities. Similar is the case with Bitcoin leading to its dominance in the market.
Jeff Gilbert of CNBC also asked Lee for an opinion on the recent rumors about Bitcoin ETF coming into fruition by 15th August. He also raised the question of its impact on the Bitcoin prices. Here, Lee said that the ETF is not a ‘done deal’ yet and the chances of it happening are still 50%. He marked that the reasons for Bitcoin’s non-acceptance will be much different than they were a year ago.
“That’s why it’s actually a catalyst because investors are going to realize that we’re moving one step closer to seeing other ways for investors to gain exposure. I mean ETFs solve a lot of problems for investors, you know, it’ll not force them to buy ICOs, it’ll take care of the taxes.”
Additionally, for institutional investors to have a portfolio that includes cryptocurrencies, a smart way to do it would be via custody as regulators look comfortable with it.
The altcoin market prices, including Ethereum [ETH] and Litecoin [LTC], are ‘just sitting there’ was also pointed out by one of the askers. Lee, in this case, guided the viewpoint that he had not expected the recovery of altcoins any time before mid-August, since the peak in altcoin prices in January this year. Therefore, he believes that an altcoin rally is on its way into the market, despite an obvious return of the Bitcoin bull alone due to the news of the ETF.
Finally, on the Bitcoin target price, Lee predicted the year-end target price to be at $25,000.
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