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Tom Lee Claims Market is Wrong, Calls for Bitcoin to be Valued at $14,800

Bitcoin (BTC), Cryptocurrency–While some are calling for the final demise of Bitcoin, with the currency exhibiting price movement that would indicate the bubble has popped, long-time cryptocurrency bull Tom Lee claims that an irrational market is to blame for the falling price of BTC.

Compared to previous predictions, which have the currency falling to $2500 with little support to turn around the losses of November, head of research at Fundstrat Global Advisors Tom Lee finds the value of Bitcoin significantly lower than what it should be. In a note to investors published on Thursday, the advisor gave some surprising and hopeful news for those who left confused over the precipitous drop in BTC pricing throughout November–a month which culminated in the worst losses for Bitcoin since August 2011.

Lee, who has been a long time cryptocurrency advocate and Bitcoin bull, claims that the fair value for the number one cryptocurrency by market capitalization should be between $13,800 and $14,800. As apart of his analysis, he cites the large number of active wallet addresses, how often BTC is used by accounts and the deflationary supply of the currency all pointing to a much higher valuation than the current price of $3400.

While some continue to chide Lee for his predictions, particularly following his oft-remarked, bullish claim in May that Bitcoin would climb to $25,000 by the end of 2018–putting the price of the currency above its most recent all time high–he remains confident in the outlook for the industry and his own valuation. As opposed to a flaw in his analysis for the worth of Bitcoin, Lee blames an irrational market for creating the current state of cryptocurrency valuation, with other indicators such as adoption pointing to a higher value,

“Fair value is significantly higher than the current price of Bitcoin,” he wrote. “In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”

Lee cites a similar argument made by analysts and supporters of cryptocurrency, that while market prices are falling the adoption and influence of the industry is expanding. Mike Novogratz, another Bitcoin bull and CEO of Galaxy Digital Holdings which is heavily invested in cryptocurrency, described a similar sentiment in a conference call to investors reported on by EWN at the beginning of the month. While Novogratz remarked that it had been a horrible year for token prices, including losses for Galaxy Digital which have exceeded $130 million in 2018, he stuck by a strong outlook for the industry in 2019 and beyond,

“I fundamentally think you’re going to see big adaption in 2019, 2020. Lots of the items in the digital world, the e-gaming space, are low value items so I think people will be more comfortable participating in blockchain. We’re making big investments in that area.”

With the potential for Bitcoin growth and cryptocurrency adoption still climbing in spite of falling prices, both Lee and Novogratz are hinting at a market turn that could happen unexpectedly. Similar to the crash in internet stocks that occurred prior to wide-scale dissemination for both Wall Street and Main Street, cryptocurrency could be in the latency phase as investors and users wait for improved development.

The post Tom Lee Claims Market is Wrong, Calls for Bitcoin to be Valued at $14,800 appeared first on Ethereum World News.

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Bloomberg Opinion Bitcoin Price Prediction: More FUD for 2019

Bitcoin (BTC), Cryptocurrency–While the crypto markets see a slight reversal in pricing to round out the final week of December, with Bitcoin creeping closer to $3700 after hitting a relative low earlier in the week, predictions on the outlook of the industry for 2019 continue to sour investors.

Last week, as reported by EWN, billionaire crypto investor Mike Novogratz lamented the state of the cryptocurrency markets throughout 2018, claiming in a conference call that,

“It’s been a horrible bear market in tokens. There’s plenty of reason to be depressed.”

However, Novogratz qualified his statement with some positive spin, reminding investors that coin prices may be down but adoption and general acceptance for crypto and blockchain has been on the rise throughout the year. Despite his crypto investment firm Galaxy Digital Holdings posting over $130 million in losses through 2018’s bear cycle, Novogratz remains confident in cryptocurrency extending into 2019 and beyond,

“I fundamentally think you’re going to see big adaption in 2019, 2020. Lots of the items in the digital world, the e-gaming space, are low value items so I think people will be more comfortable participating in blockchain. We’re making big investments in that area.”

While Novogratz, a long time Bitcoin bull and supporter for cryptocurrency, remains hopeful for a market recovery into next year, traditional financial outlets have fond more reason to be cynical. In a year end, opinion-based review for 2019 predictions, Bloomberg opinion column has struck a chord in crypto investors by publishing more of the FUD that has become part and parcel among mainstream publications.

Rounding out the top of the list for “egregious predictions of 2018,” the opinion piece by Barry Ritholtz lambasts Bitcoin and the litany of assumptions that were made at the start of the year in the midst of a bull run,

“The spectrum of predictions ran from the sublime to the criminally negligent to the utterly insane. It got so bad that a website was set up to track all of the Bitcoin prophesies.”

The article continues on to call out Fundstrat’s Tom Lee and the aforementioned Mike Novogratz for their predictions throughout the year,

“Fundstrat’s Tom Lee’s 2018 forecast for $25,000 Bitcoin was reduced last month to $15,000 by year-end. (The cryptocurrency recently traded at about $3,650.) As foolish as that sounds, it was modest compared to the rest of the asylum. Michael Novogratz forecast that ‘$40,000 was possible by the end of 2018.’”

While Bitcoin continues to trade close to a relative low for the year, with the digital asset slipping from near $20,000 in December 2017 to $3600 as of writing, the schadenfreude for BTC and cryptocurrency in general is mounting. From a combination of FOMO and “I told you so,” traditional finance analysts are lining up to cast stones at the number one cryptocurrency by market cap, despite failing to predict a similarly bullish run for the coin just a year ago.

Investors, still reeling from the losses of 2018’s ongoing bear cycle, have little to be excited for as we enter the final month of the year. However, they have managed to weather the storm of Bitcoin hate and claims of BTC “being dead,” which has led to the creation of websites tracking the obituaries for the coin. Time will tell if the current crop of predictions for the demise of Bitcoin will be added to the heap.

The post Bloomberg Opinion Bitcoin Price Prediction: More FUD for 2019 appeared first on Ethereum World News.

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Analysts: A Bitcoin (BTC) Breakout Could Be Happening In November

Throughout summer, Bitcoin price has been swinging between $6,000 and $8,000. However, according to some price analysts, Bitcoin price may well see a breakout come November. Forbes’ Billy Bambrough opines that market experts expect the breakout as early as November this year. However, he recognizes that a section of these experts are pegging their hopes on September, with the end month favored.

The Prospects

This breakout is expected because of two primary reasons: First, SEC is deliberating on whether to approve the Bitcoin ETF application presented by SolidX/VanEck. The decision is set to happen on or before September 30, and hopes are high that the proposal might be approved especially after the decision was delayed. Also, the fact that SEC announced its decision to review 9 other ETF applications turned down recently is another strong indication that things could turn out positive for the crypto.

Secondly, the Intercontinental Exchange (ICE), which is NYSE’s parent company, is set to launch a Bitcoin ETF on 5th November. The ICE launched a crypto platform, Bakkt, back in July and has partnered with large corporations like Microsoft, Boston Consulting Group, and Starbucks. However, the ICE’s ETF will differ from others in that it will be offered via its own platform and will use Bitcoin for every transaction conducted on its network. This measure is aimed at improving price discovery.

Finnbjornsson: Bitcoin Price To Hit $10,000

Bambrough also cited another expert, Hermann Finnbjornsson, who said that the value of Bitcoin could swell up to hit $10,000 within the first week of November. Hermann is the founder and chief executive at Svandis, a crypto advisory firm. Speaking to The Street, Hermann said that Bitcoin had a more than 99% chance to succeed in a bullish run.

However, there’s a still some debate within the crypto community about whether Bitcoin really needs an ETF approval to succeed. So far, the cryptocurrency has survived and weathered storms for a whole decade since its inception back in 2009. This puts to question the impact of an ETF approval on the Bitcoin market.  Granted, there exists a possibility of the cryptocurrency being over-financialized as a result of an ETF.

In any case, the events of late September and early November will spell out the future of the coin market. If both ETFs pull through, it could mean a huge boom with a significant price upshot for the cryptocurrency.

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Bitcoin (BTC) Price Dips Below $6800 Following ETF Delay

Bitcoin (BTC)–Bitcoin suffered another valuation blow today as the bears forced the price back below $6800. While the coin was experiencing a mild price rally after falling from $8200 to under $7000, news of the U.S. Securities and Exchange Commission (SEC) delaying their decision on a Bitcoin ETF until September 30th.

Most investors and cryptocurrency enthusiasts were hopeful that the SEC would deliver a favorable ruling on the creation of a Bitcoin Exchange Traded Fund, despite last month’s denail of a Winklevoss ETF. However, today news broke that the government body had decided to further put off a ruling on investment firm VanEck’s bid for creating an ETF, sending the market back into a turmoil. Despite the failure of the Winklevoss ETF proposal last month, New York based investment management firm was the frontrunner in the creation of a SEC-approved fund. Now, that ruling seems to be caught in limbo as the regulatory agency continues to punt away the issue to a later date.

Speaking in an earlier interview with CoinDesk, VanEck director of digital asset strategy Gabor Gurbacs was candid about his firm’s chance to create the first cryptocurrency ETF,

“Unfortunately, I don’t know the answer. I do know that we have addressed market structure issues and this is a chance for regulators to bring bitcoin under existing frameworks and protect investors.”

In addition, Gurbacs affirmed his company’s intention to create a product that serves the needs of institutional investors, as opposed to the retail market that dominates the investing side of cryptocurrency,

“Today, the bitcoin markets are still 90-95 percent retail and institutions are looking for a way to get into these markets so the physical ETF we have tailored to institutions.”

While some have questioned the emphasis and need for government regulated funds, VanEck is confident that such a move will bring improvement to the industry of cryptocurrency. Wall Street and institutional investors have thus far shied away from diving into the cryptomarkets, due to the volatility and lack of exchange security, in addition to murky legislation surrounding the investment vehicle. ETFs provide more certainty to these firms, in addition to revealing a pathway for more security and best practices in relation to handling the emerging crypto asset class.

Given the severe price movement following the SEC delay, Bitcoin investors across the globe are hanging on news of ETF approval. In July, Bitmex co-founder Arthur Hayes boldly predicted that the price of BTC would reach $50,000 by year’s end in the event of an approved ETF. The anticipation has caused erratic pricing in the market, with underlying technology and adoption having little to do with value swings at present.

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