Tom Lee: 3 Reasons Why You Should Hold On To Your BTC

Tom Lee 4 Reasons To Hold on to BTC

Persistent in his $25,000 Bitcoin prediction, Tom Lee, Fundstrat co-founder and strategist believes three important factors will make Bitcoin surpass its record price high in December 2017.

Unfazed by BTC’s drop to around $7,500 Lee believes this is only an instance of “typical crypto volatility”. While the price dip wiped out BTC’s gain from Mid-April, he expounds on three key reasons why he remains bullish on BTC.

He mentioned BTC production cost as the first key factor. At the CNBC show, “Futures Now”, Lee said that BTC mining cost is at around $6,000. It is still trading at more than its actual production cost.

Institutional investors are another big factor which can influence a big BTC rally. Lee has identified a number who are interested have not yet fully entered the crypto business due to regulatory issues. He commented:

“I think institutional investors have gained a lot of interest, and they haven’t really come into crypto yet because there is still some regulatory uncertainty. But that sort of ultimate allocation into crypto as an asset class is going to be a powerful reason why Bitcoin rallies.”

The third factor is the data collected by his firm showing a historical trend. Lee urges investors to hold on to BTC. He said:

“Historically, 10 days comprise all the performance in any single year of Bitcoin’s price. If you just took out those 10 days, Bitcoin’s down 25 percent a year. So as miserable as it feels holding Bitcoin at $8,000, the move from $8,000 to $25,000 will happen in a handful of days.”

Fundstrat Global Advisors, according to a research based on historical averages, places BTC at $36,000 in 2019.

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