Tom Lee: Bitcoin must be worth $ 150,000 for …

Tom Lee: Bitcoin must be worth $ 150,000 for …

Tom Lee: Bitcoin must be worth $ 150,000 to launch an ETF based on it

Fundstrat founder Tom Lee estimates that the real number of Bitcoin users is less than 500,000, while the 50 million estimate is overstated and could include many of those who joined the market amid the 2017 boom but left. Lee expressed this opinion in a conversation with BLOCKTV on Tuesday..

“I think cryptocurrencies will become an asset class in their own right, but with a user base of 500,000 people, the market is too small for institutional investors. It will mean more when 50 million people use bitcoin on a daily basis, ”added Lee..

Commenting on the start of Bakkt futures trading last month, Lee noted that the instrument’s volumes, which have remained low since launch, clearly reflect institutional investor interest in deliverable bitcoin purchases, while others have Chicago Mercantile Exchange (CME) fiat futures..

“I think Bakkt’s launch only partially played a role in the latest decline in bitcoin. Buyers were overly optimistic. These sentiments needed to be zeroed out, and Bitcoin needs to consolidate after a major move earlier in the year. But I don’t think Bitcoin should be considered a defective protocol. I know that many institutional investors are interested in Bitcoin but cannot enter with the current market size and liquidity, ”Lee said..

Lee points out that measures taken by the US Securities and Exchange Commission (SEC) to regulate the cryptocurrency market will have a beneficial effect in the long term..

Tom Lee: Bitcoin must be worth $ 150,000 for ...

“I think the ETF is still a few years away from approval, but it will be the main vehicle for institutional investors to join the market. We expect the ETF to generate $ 30 billion in demand in its first year. This is a large amount compared to the current Bitcoin supply. Bitcoin must be worth around $ 150,000 to be liquid enough to handle the volume expected from ETFs, ”Lee explained..

The analyst believes that Bitcoin may continue to decline over the coming weeks due to investor nervousness. “What happens in the coming months will not matter for what happens in a few years. If bitcoin falls, there will be an opportunity to buy ahead of halvening, “he added..

Tom Lee: Bitcoin must be worth $ 150,000 for ...

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