Tom Lee of Fundstrat, famous for his bullish Bitcoin predictions, is still supporting a big future for the leading cryptocurrency.
On 17th March, Lee tweeted that the “tailwinds” that had dragged bitcoin down during the current Crypto Winter are easing, or more specifically, he said, “the macro factors such as a rally in risk assets plus the US dollar no longer surging are tailwinds for BTC.”
He went on to claim that a recent plunge in emerging markets had pulled down Bitcoin, even though for some, a correlation between bitcoin’s performance and that of the emerging markets has not been established.
Lee went on to tweet about the stock market since just before Christmas 2018, mentioning that the recent rallies in the S&P 500 and small-cap stocks are greater than two standard deviations. He then said, “1-std dev for $BTC is +185% gain. “Catching up” to equities implies $10k-$20k.”
However, other analysts say there is no correlation between bitcoin’s price movements and the broader stock market. Bill Miller of Miller Value Partners said, “I like bitcoin because it’s not correlated with the stock market,” adding, “Bitcoin basically has no statistical correlation with stocks or bonds, which makes it an excellent diversifier.”
Tom Lee’s predictions
Few people take crypto price predictions seriously these days, as so many of them have been way off in 2018. Lee is famous for his predictions, many of which have famously been wrong. In April last year he suggested that bitcoin would rally big-time right after tax season and that there would be a bull rally after April 15th. That didn’t happen. Neither has there been a rebound in price as he also predicted.
But that has never stopped Lee from doubling down on his BTC price targets. At the height of the bear market he predicted BTC would reach $15,000, but sadly for BTC holders, the market hasn’t bounced back quite so far.
Then Lee said he would give up making predictions about bitcoin price, but he’s back again with an estimate of BTC reaching $15,000 to $20,000. Some in the community have tweeted that he has lost all credibility in the crypto space. He may have, but there are still plenty of other bitcoin bulls who are confident the cryptocurrency will achieve mass adoption. However, cranking out crazy valuations doesn’t help the crypto market.