One of the biggest bear analysts on Wall Street, Tommy Lee, has maintained his bullish outlook for Bitcoin over the next five years.
The founder of Fundstrat, one of the largest independent research and analysis firms, has repeated his projection of $6,000 for this year, and $25,000 by 2022 in spite of recent dips, according to Business Insider.
Awareness, banks and commodities
Lee’s repeat is based on his analysis from Metcalfe’s Law, stating that any investment network’s value increases based on the number of users within it.
Lee sees at least a 50 percent rise in Bitcoin users by the end of the year. The greater public awareness will fuel continued price increases.
“We see Bitcoin as gaining from institutional sponsorship, improving transaction platforms and ultimately, greater public adoption.”
The recent acceptance of LedgerX’s application for futures trading on Bitcoin will also allow investors to participate in Bitcoin without any direct exposure, bringing more funds into the marketplace.
Finally, Lee sees central banks participating in the cryptocurrency as well. He commented:
“While one may say this is preposterous to say central banks would own Bitcoin - we believe that central banks would view cryptocurrencies differently if Bitcoin's aggregate value exceeded $500 bln.“
Lee warned short term traders, however, that the volatility may well cause some price consolidation from the highs of last week.
The analyst stated that the August run had been overbought, and would see some backtracking to support levels, before moving forward again toward his predicted price point.