Fundstrat Global analyst Tom Lee explains to CNBC why the Consensus 2018 Conference did not spark a bitcoin price rally despite predictions that crypto prices will shoot up during the event.
In fact, crypto price dipped during the conference with the market losing $40B. Bitcoin dropped 3 percent. However, Tom Lee stands by his $25K end-of-year Bitcoin price forecast.
According to Lee, crypto experts believed the large turnout at the conference and the crypto players banding together will help re-energize confidence in the market.
Lee cited lack of regulatory clarity as no definite government cryptocurrency regulations were established during the conference. Crypto players expected at least some regulations get initiated and the lack of progress was frustrating.
Institutional custodial tools was another point of expectation by the conference attendees. Some pronouncements by Nomura were taken as positive by the crypto enthusiasts. Previously Nomura, Ledger, and Global advisors banded together to create a project called Komainu aiming to “bring together” “the traditional and disruptive worlds of asset custody, paving the way for secure and compliant institutional investment in digital assets.”
Lee remained bullish on the Bitcoin despite the absence of a price rally. He said:
“I think Consensus was a huge success. It is a great conference to bring a lot of people together from around the world. The quality of the people that were there was amazing.”
When asked about his prediction of the Bitcoin going up to $25K by the year’s end, Lee stated:
“Bitcoin doesn’t have to go up every day to move from $8,000 to $25,000. The ten best days account for all the return of bitcoin in a year. If you didn’t own bitcoin for ten days each year, you lost 25 percent each year.”