Financial analyst and former chief strategist at JPMorgan Chase Tom Lee (Tom Lee) believes that the stabilization of BTC at $6000 and two catalysts in the next two months can significantly raise the price of bitcoin. He stated this in an interview with Bloomberg.
“$6000 is a level that is more important than we think. Earlier this year we pointed to the $6000 as the breakeven point for mining Bitcoin, so this level should hold. The fact that BTC stays at this level, is very good news. I believe that in the end of the year there are catalysts that will contribute to the trend reversal,” said the analyst.
According to Lee, these catalysts are strengthening the infrastructure of the cryptocurrency market and the fear to miss something important (FOMO) among cryptocurrency investors.
Over the last few months Bakkt – cryptocurrency exchange, created ICE, Starbucks, and Microsoft is working to build the first regulated platform whose main purpose is to act as the trusted custodian and the broker for large investors.
According to analysts, in the end, the launch of these products will allow institutional investors to enter the stock market. But before this will be possible, bitcoin needs to grow up.
At the beginning of 2018 Tom Lee predicted that by the end of the year the bitcoin price will reach $25 thousand In may, he confirmed his prediction. However, judging from the current situation on the market, this level is unlikely to be achieved.
However, given the stabilization of bitcoin prices around $6000 since the end of July, it is likely that cryptocurrency will resume its growth in November and December of 2018. During this period, the stock market historically tend to show new records.
Recall that according to the head of Galaxy Digital Mike Novogratz (Mike Novogratz), by the end of 2018 bitcoin will grow by 30%, and in 2019 it expects the new rapid growth.