Wall Street analyst, and Managing Director of Fundstrat Global Advisors, Tom Lee, is optimistic on bitcoin despite declines seen this past week. While bitcoin enjoyed over 80% market dominance of the cryptocurrency industry at the start of 2017, the percentage slipped to 36% by January 2018. In the past two weeks, it has reached yearly highs of 48%.
Bitcoin still dominant according to Wall Street analyst
According to Lee, bitcoin is still the dominant cryptocurrency, and its regain of market share is a sign of its strength. Lee believes that investors are now convinced that bitcoin is the best bet. The potential for an ETF is also drawing investors towards bitcoin, though the SEC recently delayed the decision on the VanEck SolidX bitcoin ETF until September. Speaking with CNBC, Lee stated –
The news that we have seen, from the SEC saying bitcoin’s a commodity, to … the potential for an ETF is causing investors to decide that bitcoin is the best house in a tough market.”
The Wall Street analyst further believes that the true sign of bitcoins return is its market share as opposed to its price. Tom Lee is known for his bullishness on bitcoin. He has claimed that bitcoin will reach $25,000 by the end of 2018 and an impressive $91,000 by 2020. UBS has recently indicated that for bitcoin to replace the US dollar, it would need to reach a value of $213,000. Lee is not the only Wall Street analyst or fund manager who is optimistic about the future of bitcoin, with some predicting $60,000 by the end of 2018.
Where bitcoin stands
The price of bitcoin remains relatively low despite some positive regulatory announcements thus far in 2018. But adoption is more important than price increases or decreases, many of which are arbitrary and related to big trades as opposed to small-scale acceptance. One of the aims of bitcoin is finding out what true value actually is, in a world that has seen decades of money devaluation.
It is also helpful to remember that BTC is still, at current levels, among the best asset classes in recent history. In October 2015, it traded at around $333, and in May 2017 it traded around the $2,000 level. It is currently trading at $6,500 and will continue to see volatility, though with a definite upward trend when analyzed on a yearly basis instead of an intra-day timeline.
While bitcoin is the investment of choice, there are a large variety of interesting coins coming onto the market which can take away from its dominance. On the other hand, there is a lot to be said for the network effect, and bitcoin is becoming more widely accepted in physical and online outlets, far more than its competitors.
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Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.