- Fundstart’s Tome Lee says Musk’s recent pull back on Bitcoin could be because of investor pressure.
- Lee also increased his Bitcoin price target from $100,000 to $125,000 suggesting Musk’s recent comment would have no impact on Bitcoin bulls.
Tom Lee, Managing Partner and the Head of Research at Fundstrat Global Advisors who is an avid Bitcoin bull has now increased his Bitcoin price target from $100,000 to $125,000 despite a recent bizarre turnaround by Elon Musk. Musk has recently closed the Bitcoin payment gateway for Tesla cars just a month after availing the service to US customers citing environmental concerns. The claims about bad environmental impact surely took many by surprise given Musk himself is a big advocate for clean energy and the Bitcoin network’s majority mining power input comes from a clean energy source.
Lee in an interview said that Musk’s recent comment about Bitcoin could be a result of pressure from investors. He added that Musk’s recent turnaround would not have much of an impact on Bitcoin bulls and the top cryptocurrency would continue to soar higher. He also increased his price target by $25,000 to prove his point. He explained,
“I don’t think it’s going to get people negative on bitcoin, but it is going to get people to focus on the problems that are being created by digital assets. It is probably better to view it as a call to action for the bitcoin industry to focus on renewables or more efficient ways to provide proof of work.”
Lee is among the selected few early Bitcoin proponents who have always maintained that the top cryptocurrency would top $100,000 which until last year seemed more bizarre than far-fetched.
Bitcoin price fell nearly 15% on May 12 after Musk announced Tesla’s decision to stop accepting Bitcoin payment. Many believed the market correction was potentially triggered by Musk’s comments, however, on-chain data indicate otherwise. Bitcoin inflow on exchanges had spiked significantly right before Musk’s comments which is a bearish indicator and a sign of sell-off. Thus either people sending Bitcoin onto exchanges were aware of Tesla’s incoming decision or the sell-off was not necessarily triggered by Musk’s comment.
Musk since then has been aggressively promoting and shilling Dogecoin hinting at making necessary development changes to make the meme coin more efficient. He also claimed that he has been in touch with Dogecoin developers but the meme currency network’s developer activity is negligible over the past three years.