Bitcoin: Fundstrat explains why its prediction fell flat
Fundstrat Global Advisors, a company specializing in market strategies, is recognized for its bullish predictions of the prices of digital currencies. The co-founder of the company, Tom Lee, recently explained that, based on the economic fundamentals of BTC mining, Bitcoin could reach $ 64,000 by the end of 2019.
Predicted last month that the asset could be worth $ 91,000 by March 2020.
The financial analyst also said that Bitcoin could soon supplant gold as a store of value. More recently, he said that the 2018 crop of the Consensus conference, the world's largest blockchain ecosystem conference, is likely to be the catalyst for an additional increase in cryptocurrencies.
Lee reminded his clients that at the last consensus conference, the Bitcoin price increased by 69%, before the digital asset increased by 138% in the following two months. He also noted that the number of participants in this conference had doubled in 2017 compared to the previous year, and that it should also increase significantly this year. The event, which took place between May 14 and May 16, finally attracted almost 9,000 participants.
Although he had explained that regulatory obstacles could limit this enthusiasm, the message was clear:
"In a few words: we expect the BTC and the cryptocurrencies to behave in the same way as in previous years, with the consensus conference".
However, this was far from the case, since the cryptocoins lost more than $ 40 billion in valuation during the 2018 Consensus:
At the time of writing, however, its value had increased, with a "market limit" of more than $ 390 billion.
At the same time, the price of Bitcoin fell by 3.25%, falling to $ 8,250 at the end of the conference:
Since then, he recovered the colors and was sold Monday morning at more than $ 8,500.
Why did the 2018 Consensus Conference not have the desired effect?
Consensus 2018 For several observers, this decline can be attributed to a number of factors.
In particular, they pointed out the high price demanded by the organizers: at $ 2,000, it seems that this conference was not designed to offer private investors the opportunity to participate.
They also criticized the fact that cryptocurrencies could not be used to buy their ticket, which could be perceived as a lack of confidence in the technology that this conference is supposed to promote.
Some also considered that the proposed presentations were too superficial, and that they were only addressed to newcomers to these markets, a position that would have been in dissonance with the high prices of tickets. This is one of the reasons why Vitalik Buterin, co-founder of the Ethereum network, said he boycotted this conference.
The lack of growth of cryptocurrencies in the margins of consensus was presented by Tom Lee as "very disappointing". He believes that it could be related mainly to the lack of normative clarity about digital assets. The consultant also believes that the ecosystem needs to register the arrival of the main financial institutions within it in order to mature more, and overcome the eternal "yes to the chain of blocks, not Bitcoin" that we hear regularly in the mouth of the big figures of world finance.
However, nothing to cool the enthusiasm of Mr. Lee, who remains convinced of the future of digital assets:
"Despite the absence of a bullish concussion after consensus, our belief in cryptocurrencies was strengthened during this conference."
While acknowledging that the cryptocurrency ecosystem still faces great challenges, both internal and external, Lee said the progression of these values should be incremental. He believes that the arrival of clearer regulatory frameworks around these could help them appreciate soon.
