Tom Lee, a cryptocurrency enthusiast and co-founder of Fundstrat Global Advisor, during a speech at BlockShow Asia, said that the current falling market is the “golden age” of cryptocurrencies.
Tom Lee listed three reasons for the current decline: hardfork Bitcoin Cash, the actions of the US Securities and Exchange Commission (SEC), which forces companies to return funds to investors after the ICO, and the overall “terrible” state of global financial markets, which fell by 10% over last two months.
“There is a price correction, and the price even crossed the 200-day moving average line [a popular indicator of technical analysis for assessing price trends] but wait a while and the price will rise. It will not happen within three months or a year, but in two or three years, and now it’s really golden time for cryptocurrencies. When the price of Bitcoin again crosses the 200-day moving average line, we will realize that a waterfall of money is coming,” said Lee.
He also noted that now there are only 50 million active cryptocurrency wallets, which is an order of magnitude less than the result of PayPal (244 million) or Visa and Mastercard (4.6 billion). But if you compare Bitcoin with other payment systems for social value, then in ten years the price of the first cryptocurrency will reach $ 10 million.
“The only time when profits exceed 7% is a bear market. The price of bitcoin may still fall in the short term, but this will not change the fact that we are still at the beginning of the development of the cryptocurrency industry, and they are only becoming a class of developing assets,” Lee said.
In addition, the cryptocurrency enthusiast believes that Bitcoin will show itself well next year, although we can expect a decline within three months. He draws such conclusions in connection with the increasing adoption of cryptocurrencies among large corporations, such as Microsoft and Starbucks, as well as among institutional investors. He did not give exact figures but believes that the price of Bitcoin "will powerfully fly up."
Note that earlier Tom Lee predicted the price of Bitcoin at $ 25,000 before the end of this year. However, in mid-November, he changed his forecast and now believes that the price of the first cryptocurrency will reach only $ 15,000 by the end of the year.