Last week, a renowned analyst of Fundstrat Global Advisors and a bitcoin-bull Tom Lee was in the highlights again, with his predictions for bitcoin by the end of 2018.
It’s widely known that Tom Lee is pretty optimistic concerning forecasts, though not so self-confident and bold as John McAfee, but still optimistic. Moreover, Tom Lee is trying to formulate the fundamental factors and reasons for the cryptocurrency growth. Or is it just a seeming attempt to keep calm while there’s still no upward trends which Mr. Lee would like to observe?
The other side of the “market boxing ring” is occupied by three grand economists such as Joseph Stiglitz, Nouriel Rubini, and Kenneth Rogoff — and they are gloomy as hell on bitcoin. Their wave of almost simultaneous negative statements overwhelms the crypto market, as Bitnewstoday wrote earlier.
But is it true that such verbal attacks or praises push the green-or-red buttons of the crypto market? Some months ago the loud and uncompromising statements of McAfee forced the unqualified investors to run, buy and “hodl” everything they can get on the exchanges. The end of 2017 was full of crypto euphoria, and all predictions seemed accurate. The capitalization just gained. But everything changes.
It seems that the markets don’t react to the shouts of bitcoin ambassadors, opponents, and other famous persons. This opinion is supported by Arseniy Poyarkov, the founder of Digrate, the digital assets rating agency and a member of Advisory Council for digital economy and blockchain of the State Duma of Russian Federation. Arseniy claims that the price of bitcoin is a matter of believers’ faith.
“Today bitcoin is just a speculative instrument. People like Tom Lee gain their points due to such statements and predictions. Other people just want to believe,” – Arseniy was quite critical on the topic. He also commented the matter of reputational risks for Lee and other “bitcoin bulls,” saying that “the stock market analysts are not condemned when they make mistakes — if the facts were on their side, of course. Speaking about bitcoin, nobody knows for sure yet, which factors are the most influential regarding this instrument. That’s why all analysts can say whatever they want, with no responsibility by now.”
“News and predictions do not influence bitcoin price”, – Arutyun Nazaryan, the Chairman of Bistox exchange, and the founder of Morningstar Solutions and Morningstar Technologies, is pretty confident. – “You can turn off the news buzz, and nothing will change. Bitcoin is a highly manipulated currency, but the news and claims is not a reason for this”.
According to Mr. Nazaryan, the idea of cryptocurrency, the emergence of this phenomenon was an aftermath of the 2008 financial crisis. The expert also says that the world has to face yet another crisis, but a larger one, on a scale comparable to the event of the 1988 year. The cryptocurrency market cannot be put into some technical analysis framework. In the meantime, Arutyun Nazaryan thinks that bitcoin may face the levels of $3400-4000 per coin. The dramatic rise to $20,000 and higher, as predicted by Tom Lee, won’t be seen so soon.