Leading analysts Thomas Lee and Tone Vays have extended their bullish targets beyond $50,000 as far as 2022. Recently, Fundstrat Global Advisors LLC’s Tom Lee also explains how the price will rise along with the cut-off of Bitcoin price before the SEC can provide a green signal to Bitcoin ETF.
Bitcoin [BTC] bullish momentum seems to have lost considerable momentum as the price slid below $8500 the previous day. The crypto market is positive about a bullish break-out before the halving in May 2020. However, according to Vays and Lee, the event could fail to meet the expectations of the investors.
“If Bitcoin starts to approach 20,000. Its gonna go up very very quickly”
However, his timelines for the break-out is along the latter half of 2021 to early 2022. Co-incidentally, Tone’s prediction comes close to Tom Lee’s analysis of Bitcoin price.
According to him, Bitcoin’s price is governed by the network effect. It has an exponential relation with the price. Hence, going further along, it would take nearly 1 million users for the price to touch $25,000.
On Bitcoin ETFs
In another interview with Bloomberg, the expert also says that Bitcoin’s price would need to reach $150,000 before an ETF can be approveThis is surprising as the total market capitalization of Bitcoin at an estimate would be around $3 trillion.
Nevertheless, he also added that there is a tremendous demand for the ETF in the market already. However, the SEC would continue delaying it until the said level is reached. The current market capitalization of Bitcoin at $200 billion will be inadequate to meet the ETF demands.
Hence, going by their predictions, if Bitcoin takes two years to break above $20,000-$25,000, ETF approvals could be stonewalled for the next 3-5 years. This could hinder the institutional growth that Bitcoin attained in 2019.
Last but not least, the analysts did not ring any bearish bells for Bitcoin, as well. Tone’s end of 2020 predictions was above $10,000, and Lee also foresees growth in the network.
Do you agree with their analyses? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com