CNBC analyst Slashes Bitcoin Price Target To $15,000 From $25,000
Cryptocurrency bulls are starting to develop cold feet after the recent price implosion. After struggling to rise above the $7,000 mark, Bitcoin (BTC) finds itself on the receiving end after plummeting to the $5,000 level. In the wake of the plunge, Cryptocurrency bull Tom Lee and founder of Fundstrat Global Advisor has lowered his year-end target for the crypto to $15,000.
Lee BTC $15,000 Estimate
Mr. Lee had an ambitious target of $25,000 before the recent cut. Amidst the cut, $15,000, price target, is still optimistic as Bitcoin remains under immense short selling pressure heading into year-end. Bitcoin is currently trading at its lowest level for the year other cryptocurrencies having also experienced double-digit drops.
Lee on his part remains optimistic about a potential bounce back siting previous implosion. According to the crypto bull, Bitcoin did bounce back after coming under immense pressure between 2013 and 2015. According to Lee, Bitcoin should be trading close to 2.2 times its breakeven price that stands at $7,000.
“While Bitcoin broke below that psychologically important $6,000, this has led to a renewed wave of pessimism. But we believe the negative swing in sentiment is much worse than the fundamental implications,” said Mr. Lee
Bitcoin finds itself on the receiving end on the eruption of a crypto war on Twitter. Crypto enthusiasts sparred on the social network over what actually amounts to a hard fork on Bitcoin Cash. The standoff only went to exacerbate the sell-off, as Bitcoin remained immune as the global financial sector came under pressure last month.
BTC Uncertain future
Over the past few months, the flagship cryptocurrency has held steady above the $6,000 mark. However, it now appears that short sellers have once again regained control depicted by the recent sell-off.
The broader cryptocurrency market remains under pressure. The sectors market capitalization is down by more than 70%, from this year’s peak of $830 billion. Lee remains optimistic of a potential bounce back on the fact that the in 2014, the market dropped 78% before bouncing back and embarking on a blockbuster bullish run.
According to Lee Increased, institutional involvement should go a long way in bolstering cryptocurrency prices before the end of the year. Institutional activity has picked pace having emerged that cryptocurrencies are here to stay. A number of mainstream institutions have already launched products and platforms all intended to cater to the needs of high net worth investors, eyeing opportunities in the sector.