Wall Street expert Tom Lee feels that the derailed cryptocurrency market will soon get back on track. He “../bitcoin-price-predictions/”>predicts that Bitcoin price might touch $20000 by mid-year and $25000 by year end. Crypto-related announcements made by big companies and historical price trends serve as the base of his statement. Rakuten, a Japanese e-commerce company revealed on Tuesday that it is planning to proceed with the launch of “Rakuten Coin.”
Lee the head of research and co-founder at Fundstrat Global Advisors feels that:
“The announcement by Rakuten is another example of positive developments in crypto in 2018, suggesting the large sell-off in Bitcoin and others at the start of the year was an overshoot to the downside.”
Rakuten did not comment any further on this announcement. Lee however has announced a mid-year Bitcoin price target of $20000 and year-end target of $25000. A large number of financial firms have recently opened up about the controversial issue of Bitcoin price predictions but Lee is the foremost major Wall Street Moghul to issue a formal price target.
Lee emphasized upon the fact that the Bitcoin price plummeted to record lows during the first two months of 2018 which holds resemblance to previous six out of seven crash histories. On Wednesday Bitcoin was trading at about $10450 which was 2.9% higher than cumulative February figures but 21% down than the 2017 statistics.
The world’s numero-uno cryptocurrency was traveling on a path of rhetoric success till mid-December 2017 from where its price took a down-swing amidst fears of regulatory crackdowns by countries around the globe. Bitcoin price had hit an immense low figure of $6000 in the last few weeks which was its lowest since November before stabilizing around the $10,000 mark. Lee feels that investors should steer clear from “alt-coins” such as Ripple and Zcash until late March given their past statistics.
But cryptocurrency enthusiasts are still hopeful of a market recovery given the recent headlines published in regards to collaborations between big-shot companies and the dynamic cryptocurrencies. Lee says:
“In 2018, we forecast at least 3 major publicly-traded corporations to issue native digital tokens. Already three major companies have announced efforts within cryptocurrencies, which demonstrate that corporations may be moving towards cryptocurrencies before Wall Street has embraced them,”.
He also cited the example of Line, a Japanese messaging app which announced in January the launch of a new version termed Line Financial which will facilitate the exchange of digital tokens amongst its users.
Howard Schultz, the executive chairman of Starbucks has hinted through various statements made in the last two months that his company might implement Blockchain technology for the betterment of consumer payments application. He revealed in an interview conducted by Fox Business on Tuesday that, “I think blockchain technology is probably the rails in which an integrated app at Starbucks will be sitting on top of.” The company bears resemblance to the remarks made by Schultz in January regarding the earnings call of the coffee company.
Lee of Fundstrat had pointed at questionable connections in between cryptos and two technology related giants. He announced that, “Facebook, we believe, likely announces a crypto-strategy this year.” He feels that if such a strategy is announced by the social media company on a public platform in the form of an initial coin offering, then that shall be beneficial to both users and stock investors.
Lee noted that a similar strategy can also be adopted by Amazon.com. None of the companies however responded immediately to the post made by CNBC on Wednesday. Facebook CEO Mark Zuckerberg had earlier revealed through an online post in January that his company shall consider cryptocurrencies in the current fiscal. LendEDU announced on Tuesday that an Amazon-created virtual token shall readily be accepted and used by 51.7% Americans for fostering financial transactions. This data was extracted from an online poll conducted in between 23rd to 24th of February by Pollfish.
What are your views on Bitcoin price for the year 2018? Let us know in the comments section below.
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Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.