Tom Lee: Predicting the Price of Bitcoin and Other Cryptocurrencies Is Very Difficult

Last Modified:12 May 2020 12:05:16
Tom Lee: Predicting the Price of Bitcoin and Other Cryptocurrencies Is Very Difficult

In recent weeks the news cycle for cryptocurrencies has been relatively positive, and stockholders are happy with the increase in the Bitcoin price. All of these are accompanied with the fact that the considerable growth in business activity has made a lot of analysts happy; because they have eagerly predicted the considerable increase in the price of their cryptocurrencies.

Tom Lee is one of the founders of Fundstart who is a well-known person in the crypto world for his predictions. In an interview he had with Ran NeuNer, cryptocurrency trader, stated regarding the continuation of this predictions that he believes that the crypto market will be increasing, and he stated a number of reasons for this belief.

The interview began with the words of NeuNer about the prior predictions of Tom Lee. He confirmed that many of his predictions did not turn out to be true in the past. He later asked Tom Lee whether he still predicts or not? Lee said no to this question and said: “we have come to this conclusion that the prediction of the price of digital assets and cryptocurrencies for the future 12 months is a difficult task. Therefore, we, in fact, talk about relative increase and decrease in the price, but we do not intend to determine price goals.”

Lee further added about the current situation of cryptocurrencies and why he believes the crypto market will be increasing and stated the reason as such that the crypto market is still in its infancy. While investing in the market is improving, and on the rise, Tom Lee optimistically believes that the main increasing market will begin from August or September this year.

He believes that the best measuring method to be the fact that cryptocurrencies are actually a change in the financial system and VISA is one of the criteria because in a ballpark figure there are 5 billion VISA cards. Moreover, probably there are currently 50 million active wallets available in the world.

JPM Coin Is Not a Threat to Bitcoin

According to the remarks by Fundstart founder, the crypto market still has a long way to go, since the increase in the number of users from 5 million to 5 billion is a huge number. Lee believes that institutes such as JP Morgan and Facebook that are launching their own cryptocurrencies are considered to be beneficial for the cryptocurrency economy.

Today, the use of Bitcoin is on the rise all across the world. For example, it has been observed that the political turmoil in Venezuela led to an increase in the use of cryptocurrencies such as Ripple, Ethereum, and Bitcoin Cash. Also, Lee talked about JPM Coin and said that this coin is not a threat to Bitcoin and according to JP Morgan bank itself, this currency will only facilitate its internal payments to its employees.

It Is Still Possible for the Falling Market Not to End

While Tom Lee believes in the increasing crypto market, a while back price analysis indicated that the falling market might not end. Though cryptocurrencies are a new phenomenon, during their ten-year life, their market has been able to develop basic patterns. Recently, Josh Rager, the prominent analyst, has talked about one of these trends and has said why he thinks Bitcoin will get back to under $3150 or even worse.

Rager explains that in the 2014-2016 period, Bitcoin price fell in a way that everyone believed the market has been low. Unless there are planning to get back to the previous high price, a series of these increases and decreases in the price could indicate the increasing market or falling apart. In the end, Bitcoin experienced a sharp fall and fell to $160 from $380 in a few months.

Because recently the crypto market has experienced a similar pattern and is fighting to maintain the most amount of increase and the least amount of decrease, Rager says that the 2015 incident might happen again.

He has proposed a theory in which Bitcoin will fall to the $1800 channel after rising to $4800.

While Rager and Mahmudov are cautious about whatever comes from this market, others believe that the pillars of this market are firmly established. Ryan Selkis, the senior manager in charge of analysis, said that if Bitcoin does not enter the falling market, he will be very surprised.

With these interpretations, as Tom Lee has said, the prediction of what will happen to the crypto market is but a very difficult task!