After reaching a new All Time High, Bitcoin fell in the face of rising Bitcoin Cash prices and disagreements over the proposed SegWit2x scaling.
The Wall Street strategist, Tom Lee, believes that the long-term outlook for the bitcoin remains quite promising. As reported by CNBC, Lee, the co-founder of Fundtrat Global Advisors, has written a note to its clients setting a target of $ 6,000 for mid-2018 for the Bitcoin. It also anticipates that it could reach up to $ 25,000, Here 2022.
Why the price could reach $ 6,000 in 2018
According to him, several factors will fuel the continued increase of the bitcoin up to $ 6,000, including a 50% increase in the adoption of the bitcoin as a store of value by the general public and in traditional financial investments around cryptocurrencies.
"We see that the Bitcoin is gaining interest among institutional investors, that trading platforms are improving, and that ultimately adoption by the general public will be even greater"
Worldwide, more and more regulatory approvals are being issued to industry players. Lee says that improving the services and options of different marketplaces will ultimately increase the overall volume of transactions in Bitcoin.
"The significant increase in institutions' participation in the Bitcoin ecosystem over the next 6 to 8 months, due to recent approvals, will undoubtedly lead to a significant increase in the volumes of global transactions in Bitcoin"
Central banks could acquire Bitcoin
Lee's comments echo a recent note from Goldman Sachs, stating that it was becoming more difficult for institutional investors to ignore crypto-currencies (Article JDC)
He added that even central banks could start buying Bitcoin.
"Short-term traders should prepare for a new period of volatile consolidation before the end of August.
Other forecast around Bitcoin
A number of financial analysts have predicted favorable prices for the Bitcoin.
Sheba Jafari, chief technical analysis of Goldman Sachs, estimates that the price of the bitcoin will approach the $ 5,000 but risks a crash at $ 2,220.
The stock researcher Ronnie Moas believes that the Bitcoin will beat the figure announced by Lee and will exceed $ 7,500 in 2018.
A Harvard student believes that a single application of Moore's law could result in a price of $ 100,000 for 1 Bitcoin in 2021.
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