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Despite Bitcoin Price Plunging, Bitcoin Bull Tom Lee Still Stands by $25000 Prediction

Tom Lee | Bitcoin bull | Bitcoin price prediction | Bitcoin price $25000 | Bitcoin price updates

Tom Lee who has shown his unwavering support for cryptocurrencies, specially Bitcoin, with his number of bitcoin price predictions, is still hell bent on the Bitcoin price touching $25,000 even after a low week for Bitcoin, which plunged below $8,000 and traded at around $7,500, essentially giving up most of the gains bitcoin had managed to make from mid-April to early May after hitting 2018 lows.

Read More: Wall Street Strategist, Tom Lee Predicts Bitcoin Price To Touch $25,000

Lee believes that the bitcoin price volatility is not the only factor to be taken into account. He believes there are mainly three causes of the dips that the bitcoin price has been taking:

  • The first is the cost of producing and replicating bitcoin. When bitcoin was trading at around $8,000 on Tuesday, Lee appeared on CNBC’s “Futures Now” saying the digital currency was actually “trading at cost” because the price of production was actually about that amount.
  • Lee has also been keeping an eye on institutional investors. He said,

    “I think institutional investors have gained a lot of interest, and they haven’t really come into crypto yet because there is still some regulatory uncertainty. But that sort of ultimate allocation into crypto as an asset class is going to be a powerful reason why bitcoin rallies.

  • Last but quite the highlight, the data compiled by Fundstrat shows a historical trend that has Lee encouraging investors to hold onto bitcoin. He said,

    “Historically, 10 days comprise all the performance in any single year of bitcoin’s price,” he said. “If you just took out those 10 days, bitcoin’s down 25 percent a year.”
    “So as miserable as it feels holding bitcoin at $8,000, the move from $8,000 to $25,000 will happen in a handful of days,” 

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