End of 2018 is around the corner and Bitcoin plunged about 30% in only seven days to the new low of US$4,079.49 yesterday.
Despite this, prominent Wall Street crypto bull Tom Lee, managing partner and head of research at Fundstrat Global Advisors, reiterated his year-end price prediction for Bitcoin at US$15,000 in an interview with CNBC’s Squawk Box on Tuesday.
The cryptocurrency plunged as much as 16% on Tuesday to its lowest level since Sep 30, 2017, according to data from CoinMarketCap.com.
The sell-off slowed down though after yesterday, now at about US$4,500 at press time.
Bitcoin topped US$10,000 last November and hit nearly US$20,000 a week before last Christmas. The rally had some investors predicted US$50,000 and above in 2018.
While Lee’s prediction remains over-optimistic to many, he already cut it down from the original US$25,000.
One reason why he’s holding strong on his prediction is that he believes that traditional institutions such as banks will begin to pile into space as they see lucrative business opportunities arise.
He added that the regulatory climate around cryptocurrencies will only improve as more institutions and retailers adopt cryptocurrencies.
In the interview with CNBC, he said: “Markets around the world are fragile, and panic and sentiment are playing a disproportionate role right now. Does this mean bitcoin is broken? No. The use case is still there, but in the short term, panics are panics,”
He also attributed the crash to SEC’s enforcement against multiple cryptocurrency projects last week.
The SEC announced its first civil penalties against cryptocurrency founders on Friday as part of a wide regulatory and legal crackdown on abuses and fraud in the industry.