Tom Lee has predicted that Bitcoin will close out the year on a high. This came during a recent interview with CNBC where he stated that the performance of Bitcoin is related to the performance of emerging markets.
Bitcoin Highs and Lows
According to the Fundstrat Co-founder, the rise and fall of Bitcoin are not quite as random as one might believe.
Bitcoin saw a peak in value in January of 2018 but has seen an over 60% slump in the months that followed.
However, Lee has stated that the performance of Bitcoin can be accurately measured simply by looking at the performance of emerging markets.
An Issue of Trust
Apparently, the issue that plagues Bitcoin in the market is the lack of public confidence and trust in it, which in turn discourages potential investors.
Bitcoin faces the challenge of being seen as a risky investment in a society that tries its best to avoid risk.
“The market has been quite confusing for a while now. The existing signs point out to a recession like financial ecosystem and that is just baffling.”
Leaving on a High Note
Lee is optimistic, as usual, about the future of Bitcoin and says that it will finish the year on a high note compared to where it is now.
Michael Arrington of TechCrunch voiced similar opinions earlier this year when he said,
“My entire life has been in cryptocurrency, we’re all bullish on it. But I’m always an optimist, right? I think we’re still gonna hit $25,000 this year easy and I sure hope we’re at a low right now.”
Wading Through Murky Waters
Bitcoin and cryptocurrencies as a whole have faced some difficulty in the last few weeks.
China, for example, has taken numerous steps in combating the growth of digital currencies such as banning all original cryptocurrency content on WeChat, a social networking and messaging app that is very popular there.
Tom Lee feels that the fact that crypto tokens have maintained a steady value over the last few weeks despite these setbacks is a good sign.
Telling the Future
For now, no one can say for sure what Bitcoin will end the year with.
A part of the magic of cryptocurrency in itself is that it is often unpredictable. The unprecedented rise of Bitcoin’s value back in 2011 set a precedent of the currency being impossible to truly understand.
As for Lee’s claim of Bitcoin ending the year at over $25,000, the next few months will tell.