Fundstrat’s Thomas Lee: Bitcoin [BTC] bearish market will transcend into a bullish one in 2019

Thomas Lee, the renowned Bitcoin bull and the Head of Research at Fundstrat Global Advisors, has come out to state that most technical analysts are switching their Bitcoin [BTC] predictions for 2019 from bearish to bullish.
Following the February 8 uptrend, which saw the overall market cap add a whopping $9 billion in less than 24-hours and saw coins reach massive double-digit percent increases against the US dollar, proponents are hopeful, and Tom Lee backs this hope with numbers.
Lee appeared on Fox Business to reiterate his bullish sentiment for the coin and then took to Twitter to state the same. He referenced a piece from a “MagicPoopCannon,” titled, “Odds Increasing That The Bitcoin bear is Dead!” and added that the analysts who were bearish on cryptocurrencies in 2019 are switching to the bull. He added that the piece looks at a 200-week moving average acting as the support, which people like Robert Sluymer, the Managing Director and Technical Strategist at Fundstrat, have noted as well.
In his analysis, MagicPoopCannon compared the Bitcoin price charts from early-2015 to the current period. He stated that there is a triangle formed using the 200 MA and that Bitcoin has, “rallied back into the triangle formation that it broke down from”. He added that if the coin could close its daily price candlestick inside the triangle, that would represent 2015-like conditions and prove to be a bullish swing.
MagicPoopCannon had earlier confirmed that Bitcoin would bottom at $2,000 and that the February 8 bullish push could prove a strong technical case for the top cryptocurrency. Bitcoin surged from being just under $3,400 at the start of the trading day on February 8 to a high of almost $3,700 at the close of the day, a remarkable rise following weeks of bearish movement.
He also drew several parallels between LTC’s recent rise, which saw the coin surge by over 30 percent, and that of Bitcoin’s, he added that “as soon as LTC began to move, I figured BTC would follow suit”. The analyst believes that if Bitcoin can push above the 50 EMA market and further to the top of the downtrend channel, then:
“In my opinion, that would basically confirm that the bear market has ended.”
The support is pegged at the 200-week EMA, which as current price movements go, stands at $3,300 and if Bitcoin would edge below this point, thereby failing to end outside the triangle, the trend would reverse.
As the cryptocurrency markets turned for the better on February 8, Tom Lee listed out nine incremental improvements in the landscape that will push cryptocurrency prices upwards. In it, he added that the value of the US Dollar is expected to fall, institutional investors will see institutional grade custody solutions and top exchanges like Binance will add credit-cards to their offerings. All this and more, according to Tom Lee and his team at Fundstrat, will push Bitcoin and other cryptocurrencies upwards in 2019.
Some Twitter users were not very hopeful, despite Lee’s prediction. Carlin Lee tweeted:
“Rattling around in a downward trend channel is bullish? I think not.”
Tim Les, tweeted:
“it doesn’t matter if you’re bullish if there are no buyers.”
The post Fundstrat’s Thomas Lee: Bitcoin [BTC] bearish market will transcend into a bullish one in 2019 appeared first on AMBCrypto.
Source: AMB Crypto

Crypto Pioneer Mark Jeffrey is Sure that Bitcoin will Reach $250k, and Here’s Why

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Crypto Pioneer Mark Jeffrey is Sure that Bitcoin will Reach $250k, and Here’s Why

Bitcoin pioneer, Mark Jeffrey, who published “Bitcoin Explained Simply” (2013) and “The Case For Bitcoin” (2015), bets that Bitcoin will multiply surpass the earlier highs seen towards the end of December 2017.

Crypto Pioneer Mark Jeffrey is Sure that Bitcoin will Reach $250k, and Here’s Why

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Source: CoinSpeaker

Fundstrat: Bitcoin Fundamentals “Should” Turn Positive Over 2019

While 2018’s lethargic crypto market crawl has continued into early-2019, save for Friday’s sudden buy-side influx, analysts have begun to express optimism. Case in point, Fundstrat Global Advisors, a New York-headquartered investment advisory outfit, expressed why the outlook for Bitcoin and other cryptocurrencies could improve over 2019.
Fundstrat Expects Bitcoin Fundamentals To Improve
In a recent tweet outlining the premise of a company report, Thomas Lee, the co-founder of Fundstrat, expressed why cryptocurrencies’ prospects could move from “negative” to decidedly “positive” over the course of 2019. Lee & Co., who called fundamentals “convergence trends,” laid out a normal of macro, technical, fiat-to-crypto inflows, blockchain technology, and equity trends to back their analysis.

CRYPTO: we see 9 incremental improvements in the landscape that ultimately support higher prices.
See below… pic.twitter.com/7DSrfVjkoi
— Thomas Lee (@fundstrat) February 8, 2019

Firstly, Fundstrat expects for the U.S. dollar to weaken over the coming months, thus catalyzing a potentially inverse trend in the Bitcoin price. The advisors also expect emerging market equities to outperform American stocks, bonds, and similar vehicles, again creating a likely positive environment for cryptocurrencies, which are often classified as “risk-on” and non-correlated assets.
This will all be underscored by Fundstrat’s belief that institutional investors, especially notable endowments, will continue to trickle in during 2019, especially due to developments in cryptocurrency custody and over-the-counter trading. Fundstrat’s research team also noted that an influx of consumer interest may be catalyzed by Binance’s recent addition of credit card purchasing capabilities, the Lightning Network’s achievement of “reaching critical mass,” and potential initial public offerings from Bitmain, Bitfury, and other crypto industry giants. And with all this in mind, it was concluded:
“We have detailed the trends of factors affecting crypto in 2019, ahd [there are] more positive than negative developments… Overall, the outlook for Bitcoin should improve over the course of 2019.”
This report comes just weeks after Lee took to Fox News‘ business segment to quip why $25,000 is a “fair valuation” for Bitcoin.
What About Bitcoin’s Technicals?
While Lee & Co. seem to be in the state of mind that the value proposition that cryptocurrencies pose will gain traction in 2019, from a technical standpoint, Fundstrat is more bearish than bullish.

According to a research note from the investment group’s Rob Sluymer, obtained by Bloomberg, the technical setup for altcoins is looking a tad dismal. As reported by NewsBTC on an earlier date, CryptoFX’s large-cap, mid-cap, and small-cap advance/decline indices are on track to retest their mid-December 2018 lows, especially due to their supposed “vulnerability to a pending breakdown.”
Sluymer, the head of technical research at Fundstrat, went on to paint a foreboding picture for Bitcoin. While he was hesitant to mention specific time frames in a bid to stay cohesive with company policy, the former RBC Managing Director stated that a price point to watch for BTC will be $3,100. In his eyes, if the cryptocurrency breaks under its Q4 lows at ~$3,150, a move to $2,270 wouldn’t be unlikely, as that would indicate that the market hasn’t found a long-term floor just yet.
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2019 Will Be Even Worse for Cryptos, Believes Famous Californian Professor

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2019 Will Be Even Worse for Cryptos, Believes Famous Californian Professor

While some remains optimistic about the current market decline, crypto-naysayers take this occasion to sentence Bitcoin and the rest of crypto-waggon to death.

2019 Will Be Even Worse for Cryptos, Believes Famous Californian Professor

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Source: CoinSpeaker

Crypto Year in Review: How Bitcoin (BTC) Performed in 2018 and What Hides in 2019?

CoinSpeaker

Crypto Year in Review: How Bitcoin (BTC) Performed in 2018 and What Hides in 2019?

On December 17th, 2017 the price of Bitcoin neared $20,000. Optimists hoped that was just the beginning. They were right: that was the beginning.. but maybe the beginning of end? Check out how BTC performed in 2018 and what is likely to hide in 2019.

Crypto Year in Review: How Bitcoin (BTC) Performed in 2018 and What Hides in 2019?

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Source: CoinSpeaker

Ex-Goldman Exec Believes the Crypto Market Will Thrive in the Long-term

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Ex-Goldman Exec Believes the Crypto Market Will Thrive in the Long-term

An Ex-Goldman is among the few notable investors remaining positive on the crypto markets. He holds his ground in spite of other institutional investors exiting the crypto space.

Ex-Goldman Exec Believes the Crypto Market Will Thrive in the Long-term

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Source: CoinSpeaker

“Crypto valuation Models Are Just A Bit Backward” says Michael Casey

Crypto markets are in the mood of their own and as one thinks the floor is reached, the markets plunge again. With markets collapsing without an actual change in the fundamentals of Bitcoin and other major cryptocurrencies, all discussion has now moved to one question – “What is the fair value of Bitcoin”. Recently Michael Casey, a well-recognized author, and the co-founder of Network Effects Media spoke to a media outlet saying that valuation models used to valuing cryptos and bitcoin are wrong.
Casey concentrates on valuation methods while others discuss fair values
Michael Casey, a well-recognized author, and the co-founder of Network Effects Media said in an interview with a media outlet, that the crypto market’s valuation models are “all just a bit backward.”  Expanding on what he meant, Casey explained that cryptocurrencies and blockchain technologies are foreseen as a way to disintermediate or remove intermediates from the ecosystem and curb centralization of entities. But when it comes to valuing these crypto assets, the models used are very similar to the once that are used for traditional markets instruments.
He added, “we’re continually denoting BTC’s value in dollar signs, rather than the iconic Bitcoin”.  In other words, he said that much of the crypto market is focused on a positive exit into fiat, rather than maintaining the skin in the game. Casey added that this causes incentives to get misaligned, as investors look for profit, instead of overthrowing the often-corrupt powers that be
Casey is not the only one that is now looking at the valuation of cryptocurrencies. Recently Stephen Pair, CEO of the world-renowned crypto-friendly payment processor BitPay, spoke to CNBC Squawk Box where he mentioned that the Bitcoin Price is currently driven by speculations and is very divergent from what its actual price could be.
Another prominent crypto bull which spoke about the valuation and fair market value of Bitcoin is Tome Lee. The Fundstrat Global Advisors Head of Research recently stated that the current market conditions for Bitcoin are wrong and he believes BTC’s fair value is between $13,800 and $14,800.
“Bitcoin’s fair value, given the number of active wallet addresses, usage per account and factors influencing supply, is between $13,800 and $14,800”. – Lee said to Bloomberg
He further added that “Fair value is significantly higher than the current price of Bitcoin. In fact, working backward, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”
Another crypto enthusiast Morgan Creek’s Anthony Pompliano, in his recent post, had spoken about several parameters that Bitcoin fundaments were growing and this market meltdown was currently not justified

Bitcoin's fundamentals are strengthening. Don't let the price distract you.
The best performing asset in the last 10 years isn't going anywhere.https://t.co/avY2WrA1q0
— Pomp 🌪 (@APompliano) November 30, 2018

 
In his post, Pompliano also mentioned to his readers that
“Don’t be distracted by the noise. Focus on the fundamentals. Bitcoin isn’t going anywhere.”
With so much spoken about valuation and fair prices no one actually knows why the markets collapsed or where the floor for this fall is. But one thing is definite Bitcoin usage is getting wider as more and more people are aware of it. Will the market bounce back, well let’s wait and watch
What do you think is the bottom of this market? What do you think will the next trigger for this market? Do let us know your views on the same.
The post “Crypto valuation Models Are Just A Bit Backward” says Michael Casey appeared first on Coingape.
Source: CoinGape

Bitcoin [BTC]: Tone Vays “couldn’t disagree more” with Tom Lee’s valuation

Tone Vays, former Wall Street Risk Analyst and Bitcoin enthusiast/influencer, spoke about the bear market and how Bitcoin is performing and gave his opinion on probable outcomes for Bitcoin in the near future.
Vays referred to the monthly chart of Bitcoin said that this was the worst that Bitcoin has ever seen ever since the start of 2018.
Furthermore, Vays said that there was a chance for the monthly RSI to reach and possibly cross the 30-line, referring to an oversold market for Bitcoin.
Source: TradingView
He continued:
“That would mean a sub $1000 Bitcoin or a $1,000 Bitcoin for a year, like $1,200 over a year, that’s what it would take to get the RSI to be below 30”
In the live stream, Vays said that he disagrees with Tom Lee’s valuation of Bitcoin which is in the range of $13,000 – $14,000.
Vays said:
“I just saw links to an article about Tom Lee today morning telling you that Bitcoin’s valuation is still above like $15,000. I couldn’t disagree more. I think Bitcoin’s current valuation at best $5,000 and I could be a little over-optimistic on that.”
According to Tom Lee, the fair price of Bitcoin should lie between $13,800 and $14,800 and if the Bitcoin wallet users approach 7% of the total number of users of Visa, which is at a massive $4.5 billion, then the fair price of a Bitcoin would be $150,000.
Fundstrat’s Tom Lee said:
“Given we are so close to year-end, we are not providing any updates to near-term price objectives—read this as, we are tired of people asking us about target prices.”
Apart from his fair price prediction, Lee recently slashed his year-end prediction for Bitcoin from a prior $25,000 to $15,000 because Bitcoin had fallen below the break-even point.
There was a huge uproar in the community about Tom Lee’s opinion which led many prominent people to talk about it, and mostly disagree with it.
Nouriel Roubini tweeted in reply to Tom Lee’s fair price for Bitcoin asking people to “keep digging deeper in that cesspool”.

Kevin Marek replied to Nouriel Roubini saying:
“What is your actual argument against protocols that enable value transfer online in a trust less manner? Calling things shitcoins makes you look much less like an economist and more uneducated with every post.”
Another user, CryptoRev added:
When will you stop regretting your decision of not investing in Bitcoin at 1 usd?
You still have chance to invest in Btc else we will see your post in 2020
“Bitcoin down 35% in a week trading at 135000 Usd told these crypto traders to stay away”
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Source: AMB Crypto

Bitcoin [BTC]’s prices are significantly lower than its $13000-$14000 fair price, says Tom Lee

Fundstrat’s Thomas Lee aka Tom Lee, well-known for his predictions on Bitcoin in the crypto-community spoke about the current market for cryptocurrencies and more specifically about Bitcoin and year-end predictions.
As reported by CNBC, Thomas Lee, former J.P. Morgan Chief of Equity Strategist said:
“Given we are so close to year-end, we are not providing any updates to near-term price objectives—read this as, we are tired of people asking us about target prices.”
Lee, in his recent appearance in the crypto-community, said that he was done with giving out year-end predictions but instead updated his opinion on what the fair price for Bitcoin should be.
As per the International Accounting Standards Board, fair value is the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on a certain date, typically for use on financial statements over time.
To further simplify it, fair value is the rational and unbiased estimate of the potential market price of a good service or asset.
Lee calculated the fair price of Bitcoin with the number of active wallet users in mind and said that it is “significantly” higher than the actual price. Considering the number of active wallet users are 50 million, Lee thinks that the active wallet users have to be reduced to $17 million to justify the current price of Bitcoin.
Moreover, Lee thinks the fair price of Bitcoin should lie between $13,800 and $14,800, but the current price is hovering in the $3,300 range.
It might be true to some extent as the price of Bitcoin has collapsed vastly in the last two months breaking major supports at ~$6,500 and now at ~$3600. The prices are getting closer to $3,000 mark as the end of the year approaches.
If the Bitcoin wallet users approach 7% of the total number of users of Visa, which is at a massive $4.5 billion, then according to Lee’s regression model, the fair price of a Bitcoin would be $150,000.
Bitcoin has suffered a massive decline of 82% in its price and market cap since its all-time high in December 2017 and the total market cap of all-cryptocurrencies have also declined by an approximate of 87% and is currently hovering at $111 billion.
Lee said that investors will likely stay bearish until Bitcoin remains below the 200-day moving average and that technicals play an important role in cryptocurrency trading.
In his recent appearance on CNBC, Lee cut his year-end prediction for 2018 from $25,000 to $15,000 and substantiated it with the research done by the Fundstrat’s data science team which included calculating a break-even point. Lee later changed his prediction to $15,000.
A Twitter user J. Braunstein commented:
“A prudent speculator never argues with the tape. Markets are never wrong, opinions often are.” – Jesse Livermore
Another user BitHoncho replied:
“Oh well .. he was wrong about $ES targets as well .. But always called on cnbc .. It should be @winternomics who should be there”
Jersey replied BitHoncho saying:
“Value is scarce man, even if Kaz was up there, most wont take in the info and judge the mask or his grammar, look at the 99% nitpicking Musk’s tweets #RuleOfTheAtom”
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Source: AMB Crypto

Crypto Bull Tom Lee is Sure that Bitcoin Fair Price Makes at Least $13,800

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Crypto Bull Tom Lee is Sure that Bitcoin Fair Price Makes at Least $13,800

According to cryptocurrency bull Tom Lee, Bitcoin is underestimated, and its fair price should be about $10,000 above where it is trading now.

Crypto Bull Tom Lee is Sure that Bitcoin Fair Price Makes at Least $13,800

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Source: CoinSpeaker

Tom Lee Declines to Update Year-End Bitcoin Price Forecast

Outspoken Bitcoin bull Tom Lee is one of the cryptocurrency’s biggest cheerleaders, and has made a number of lofty price predictions that have unfortunately fallen short.
With the price of Bitcoin hitting new one-year lows after the break of critical support at $6,000, Lee is now saying that Bitcoin is currently extremely undervalued, by as much as $10,000. He’s also uncharacteristically declining to make any future predictions on the cryptocurrency’s price.
Tom Lee Tight-Lipped on Future Price Predictions
While speaking to Bloomberg, Fundstrat Global Advisors’ head of research, Thomas Lee, refused to offer an amended year-end forecast for Bitcoin, saying he was “tired of people asking us [Fundstrat] about target prices.” Lee has made some bold predictions in the past, making a call back in May claiming that the cryptocurrency would reach $25,000 by the end of the year.
Related Reading | The Future is Brighter Than Ever for Crypto, Says Roger Ver
Not only did Lee’s lofty prediction not come true, he missed his target by over 85% unless Bitcoin makes a sudden, sharp recovery. Given the current market sentiment, reaching Lee’s year-end target would seemingly be impossible, which may explain Lee’s reluctance to make another prediction. Lee later lowered that prediction to a more modest $15,000, but even that target is a far way off.
Without making another specific prediction, Lee did point to Bitcoin’s price being fairly valued at $150,000 per BTC if the amount of wallet addresses can reach 315 million, which would be 7% that of VISA’s 4.5 billion accounts.
Tom Lee: Bitcoin Fair Value is Between $13,800 and $14,800
According to Lee, Bitcoin’s fair value is between $13,800 and $14,800 – making the leading cryptocurrency by market cap undervalued by more than $10,000. Lee based his fair value figure on the number of active wallet addresses, the amount of transactions across each account, and the overall supply.
“Fair value is significantly higher than the current price of Bitcoin,” Lee explained.
Bitcoin recently breached a repeatedly-tested price floor at $6,000 sending the market into a state of panic, and the price plummeting over another 40% to a one-year low of $3,250. Bitcoin is currently trading at around $3,400, making the original cryptocurrency undervalued by $10,400 on the low end, and $11,400 on the high end, according to Lee’s valuation.
Related Reading | Tom Lee: Bitcoin is the Best House in a Tough Neighborhood
As for why Bitcoin is so undervalued, Lee claims that it’s a combination of factors. This includes the mounting fears surrounding a potential global economic collapse and the corresponding de-risking by investors, initial coin offering treasuries selling off assets to fund operations, and the normal market cycling following the break of a parabolic advance.
Lee neglected to mention another factor that the cryptocurrency community finger points as the reason for the current downward spiral: the ongoing war between two opposing Bitcoin Cash camps. Regardless of the exact reasoning, enough factors have piled up to send the market into a state of fear, and as a result, the entire cryptocurrency market has been bleeding out – with no end in sight.
Featured image from Shutterstock
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Bitcoin [BTC] and cryptocurrencies are correlated to global markets causing panic selling, says Tom Lee

Fundstrat’s Thomas Lee more commonly known as Tom Lee recently spoke about Bitcoin and the current bear market and panic selling and what it means for other cryptocurrencies.
In the interview with Cointelegraph, Tom Lee discussed the global market meltdown that is currently happening with the Dow and S&P and how cryptocurrencies like Bitcoin and XRP had a “negative correlation” with the global markets. He added that the 10% meltdown of the global market in the recent six weeks had flipped this scenario and that cryptocurrencies are now correlated with the global markets essentially leading to panic selling.
According to Lee, the panic selling would be a good time buy to Bitcoin and said that people who invested in the S&P when it crashed 200 points got good returns as compared to people who panic sold their stocks. Lee further added that although people made a short-term loss they made a big return in the long-term.
He correlated this with Bitcoin and said:
“So to me, crypto is exactly this moment that Bitcoin may have a downside in the near term but does this change the fact that it’s still the earliest days of crypto and it’s about to become an emerging asset class. Well, those are going to carry much higher prices.”
Furthermore, Lee added that one should not invest more than 2% in cryptocurrencies to avoid worrying about it all the time. He continued:
“The thing is to realize that some of the crypto projects are probably hopeless. But things like Bitcoin and Ethereum [ETH] or XRP have staying power. And these are the ones where unless you think the protocols actually completely broken you’re seeing price distortion caused by panic selling.”
Lee said that he was bullish in terms of Bitcoin for 2019 and that he was looking forward to more adoption and real-world use cases for Bitcoin. He also said that there would be an investment wave in the upcoming year for Bitcoin and other cryptocurrencies.
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Source: AMB Crypto

Bitcoin [BTC] could be worth over $10 million in 20 years, says Tom Lee

Thomas Lee aka Tom Lee, the managing partner of Fundstrat spoke in the Blockshow Asia 2018 on November 28, where he correlated Bitcoin [BTC] with FANG stocks and also speculated the price of Bitcoin in 20 years.
Tom Lee derived a comparison between earlier generations and their investments. Lee explained:
“The silent generation [born during the great depresion] is the only generation that bought gold as an investment when US Dollar standard in 1971. That was the only time gold which drove a 15 x gain in gold and it is because of a single generation and the same thing will happen with the crypto and millennial.”
Referring to the 1908s consumer stocks and the actual FANG stocks [Facebook Amazon Netflix and Google], Lee said that every generation creates its own FANG stocks and that the next big FANG is within Fintech. He added:
“The next big FANG is withing FinTech whether its square probably Bitcoin and that’s really the opportunity of the generation. Crypto I think is in the early stage, there’s only 50 million active crypto wallets but there’s 227 million PayPal accounts and there’s 4.6 billion Visa and MasterCard accounts and by using social network value… Bitcoin could be worth over $10 million per Bitcoin in 20 years period”
Focussing on the number of wallets and its growth, Lee said that wallet adoption was both a function of millennial adoption and the fact that Bitcoin and cryptocurrencies were becoming an asset class. He continued that by 2019 the crypto-ecosystem would see catalysts being introduced into it and that institutions would play a big role in that.
Lee explained that institutions would usually look at the 200-day moving average of Bitcoin’s price. He clarified that institutions wouldn’t jump into the Bitcoin market just because Bakkt launched and that they were waiting for Bitcoin to recover to its 200-day average, which is around $7000. He continued:
“Unless you think crypto is completely broken, we have a price correction that is taking place that has caused the price to fall even below the 200-day moving average but if you’ve got time a rise then that’s  not three months, not one year but two-three year, this is a golden time to be long on crypto. And we know that as soon as Bitcoin goes above 200-day there’s gonna be a flood of money coming.”
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Source: AMB Crypto

Tom Lee: Crypto Is Bent Not Broken, Plenty of Room to Grow

Whether you like him or not, Tom Lee, Fundstrat Global Advisors’ head of research, has been one of Bitcoin’s foremost advocates in recent memory. In a testament to this, the former JP Morgan managing partner has arguably become crypto’s de-facto figurehead, appearing on mainstream outlets to tout his over-ardent optimism on this budding asset class. And while his short-term outlook on Bitcoin has recently undergone a slight shift, presumably due to this year’s market pitfalls, Lee recently doubled-down on his sentiment that cryptocurrencies will boom in the long haul.
Related Reading: Tom Lee’s Big Bitcoin Price Prediction Dropped to $15,000
Tom Lee On Recent Bitcoin Drawdown
In the past 15 days, crypto investors across the globe have been perplexed by Bitcoin’s latest draw-down, which saw the asset move from $6,200 to a yearly low at $3,400. The short-term bearish, long-term bullish subset of analysts, which includes Tone Vays, noted that such a move was inevitable. But in the eyes of speculators and virgin traders, Bitcoin’s 40% collapse was a demeaning sight, one that seemingly came from the ether, if you will.
However, Lee, who also acts as Fundstrat’s in-house crypto analyst, sought to make crypto’s latest leg lower palpable, taking to BlockShow Asia 2018’s main stage on Tuesday.
Lee, often called one of Bitcoin’s biggest bulls, drew attention to three “temporary disruptions” in the cryptosphere: the U.S. Securities and Exchange Commission’s recent crackdown on ICOs and digital securities markets, the Bitcoin Cash network upgrade debacle, which he dubbed a “fork war,” and the “meltdown” of the macro traditional equities market, which has seen the S&P 500, for example, fall by 9% in two months alone.
Interestingly, Fundstrat’s research head explained that many of his clients, who are experiencing the full brunt of the stormy stock market, have fallen victim to the sentiment that cryptocurrency markets are beyond repair.
But, Lee, who evidently still has some crypto cards on the table, explained that he has to politely disagree with this bearishness, subsequently noting that the Bitcoin crash can actually be deemed “healthy.” Touching on this ludicrous claim, the Bitcoin advocate noted that crypto’s dismal performance has routed industry participants’ attention away from price into building “real, high-return, value-capture products” that better the underlying ecosystem.
Crypto Is Bent, Not Broken, And It Has Room To Grow
So, putting it short and sweet, Lee explained Bitcoin is “bent, not broken,” before adding that this nascent industry has staying power due to Bitcoin’s $1.3 trillion in on-chain transaction value, which is reportedly 2.5 times Paypal’s value throughput and “just a few years away” from that of Visa. More importantly, the Fundstrat representative added that there is still “enviable” profitability in the cryptosphere, estimating that BitMEX is poised to make $1.2 billion in fiscal 2018.
This profit alone would make BitMEX, an infant crypto mercantile platform, more profitable than Hong Kong Exchanges & Clearing and Nasdaq, even while Bitcoin is just a decade-old creation. So, stating that the two aforementioned factors are the proof in the pudding, so to speak, Lee noted that crypto is here to stay, without a doubt. And, more notably, has a copious amount of leg room.
Lee then drew attention to the “Silent Generation’s” unbridled enamorment with gold, which catalyzed a 15x bull run for the precious metal, adding that it is likely going to be the same for millennials and crypto assets.
Still, he added that this isn’t going to happen overnight, as he brought up institutions and the importance they place on Bitcoin’s 200-day moving average (MA). He noted:
“We have a price correction taking place, which has caused the price to fall even below its 200-day MA, but if you’ve got time, it will rise. It will not happen within three months, or one year, but in two to three years, but this is the golden time to be in crypto. As soon as Bitcoin crosses its 200-day, we know there will be a flood of money coming.”
Featured Image from Shutterstock
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Bitcoin Falls Below $5,000 for the First Time in 2018 on Coinbase

The price of Bitcoin fell below $5,000 on Coinbase for the first time in 2018 as the bear market continues to drag prices down across the board.
Market Cap Drops to Below $87 Billion
For the first time since October 2017, Bitcoin dropped lower than $5,000, at $4,996 on San Francisco-based crypto exchange Coinbase. As a result, its market cap was pushed down below $87 billion.

#Bitcoin is officially under $5k on Coinbase… pic.twitter.com/MyT75TEWlL
— Nye The Crypto Guy (@CryptoShillNye) November 19, 2018

Over the past seven days, Bitcoin’s value has declined by over 21 per cent, according to CoinMarketCap. The drop in value comes after months of stability with the crypto asset trading within the $6,200 and $6,800 range. However, last week market prices across the board started dropping between 10 and 20 per cent.
At the time of publishing, Bitcoin’s value has risen slightly back above the $5,000 level, at $5,101. Yet, according to one analyst Bitcoin is likely to fall back under $5,000 as it faces regulatory hurdles in the next few months. Stephen Innes, the head of Asia Pacific trading at Oanda, said to MarketWatch:
“I remain incredibly bearish on BTC with the $1,000 level looking as likely as $10,000. But this is from a longstanding and unwavering view that regulators and the banking system will continue to push back against the rise of virtual markets…”
According to Mati Greenspan, an eToro analyst, if the support level of $5,000 doesn’t hold, the next logical won’t be until $3,500. In a report from CNBC, he stated: “With all the falling prices lately, this definitely fits the definition of a buyers market.”
Others, however, have pointed to the recent Bitcoin Cash hard fork as the reason for declining prices. Brian Kelly, founder and CEO of cryptocurrency investment firm BKCM, said last week that the market is experiencing a “crypto civil war.” Referring to the split with the altcoin, Kelly said:
“When you do a software upgrade, everybody usually agrees. But in this particular case, everybody is not agreeing. So, we’ve got ourselves a ‘crypto civil war’ […] People started selling. That triggered stops. Everybody got concerned. And that’s what happened today — the entire market sell-down.”
Related Reading: Bitcoin Cash War Begins: Hash Power of BCH Increasing Rapidly
It remains to be seen whether or not the market will improve in the short-term. As for Tom Lee, co-founder of Fundstrat Global Advisors, he’s reportedly revised his end of year prediction for Bitcoin. Over the weekend, it was noted that he had changed it from $25,000 to $15,000.
Given the way the market’s currently heading that seems incredibly optimistic.
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