Tom Lee is a well-known, outspoken Bitcoin (BTC) and cryptocurrency ‘bull’. According to his latest predictions, cryptocurrencymarkets are now set to get almost $100 trillion of investment. This is set to occur after the recent spate of price crashestriggered by the Ukraine situation. The volatile regulatory landscape is seen as a likely catalyst to this development.If things turn out the way the global crypto market share BTC could well be on its way to cross the $200,000 price.
Recently, the prices of cryptocurrencies have been highly volatile on Bitcoin Trading Platform even after the market has reboundedfrom its big dip. While Bitcoin is trading in the range of $40,000 and $44,000, Ethereum, Solana, Cardano, XRP, and BNB have also shown extreme levels of volatility.
$100 Trillion Potential Investment:
According to Tom Lee, Bitcoin could attract the attention of the existing generations of investors. 76% of the wealth in the U.S. is in the hands of those over 65 and this amountsto $100 trillion. These people have not yet taken Bitcoin seriously and see it as a form of hobby for new investors.
The changing regulations are easing investment into BTC and the major altcoins. Proper regulation could unlock a significant part of that $100 trillion investment potential into this market.
Potential Crypto Regulation Update:
The U.S. government is expected to introduce a new executive order that would require agencies to review BTC and other cryptos for a regulation strategy. With more relaxations, more of the above-mentioned investors are expected to see crypto in a different way. Even a 2% capital infusion from the $100 trillion investment potential is expected to boost Bitcoin’s network value by 5 to 15 times.
Currently, the crypto market has shown a trend of tradingin tandem with the stock market. Investors’ and traders’ decisions have recently been influenced by the tensions between Ukraine and Russia.
Impact of Ukraine-Russia Tensions:
The border tensions between the two nations have made a big impact on Bitcoin’s price. The coin’s value recently tumbled by almost 10% in a single day. The world is looking at the situation, as any de-escalation could mean a much-needed relief for the market.
Interestingly, Ukrainehas also moved ahead with crypto regulations, recognizing the digital currency. The country has followed a balanced approach to regulation. The law defines where each market participant stands. It is expected to help cryptos get widespreadadoption in everyday lives. Ukraine is already ahead of other countries as an adopter of cryptocurrency and the underlying technology.
Potential Threats to Cryptocurrency:
According to Lee, the greatest threat to crypto can be any potential vulnerabilityin BTC in the future. It is the most important blockchain and the most valued one as well. There are two potential scenarios expected to threaten crypto in the near future:
- If the global energy costs fell to near-zero, no one will have to spend anything on protecting security networks. This will increase the risk of potential attackson crypto networks by 51%.
- Cryptographic has could get exposed. In simple terms, someone could find a way to beat the proof-of-work (PoW) concept. It is possible that someone may develop technologies that allow interference with the conventional cryptographic algorithms involved in securing the Bitcoin blockchain.
In September last year, Lee had claimed that investor priority has been shifting to higher-risk assets. His prediction proved right, as the crypto market touched its peak in November, achieving unprecedented capitalization. He further predicts that as millennials enter their middle age, the volume of investments into the crypto and stock markets will continue to grow. A recent market research study showed that over 67% of millennialsare more interested in BTC investment than gold.
In 2017, Tom Lee had predicted that Bitcoin could be valued at $55,000 by 2022. This prediction was made at a time when BTC was trading at $2,540. One of the major factors estimated to drive the coin’s value was the crypto market cannibalizing the demand for gold.
Apparently, the Fundstrat Global partner has made some accurate crypto predictionsin the past. If his recent claims are to be believed, the crypto market may be well on its way to recovery and massive growth in the future.