Bitcoin price (BTC/USD) hovers around $8,500 on Monday

Fundstrat’s Tom Lee admits wrong Bitcoin rally forecast

Bitcoin price (BTC/USD) hovers around $8,500 on Monday

The Bitcoin price (BTC/USD) has moved above the $8,500 level after posting solid gains in yesterday’s afternoon trading.

Having opened the yesterday session at $8,246.99, the original cryptocurrency improved its performance in the afternoon, when it rose to a six-day high of $8,562.41. The digital currency eventually closed the session at $8,513.25.

While Bitcoin has largely managed to defend the $8,500 mark on Monday, it has slipped below that level in more recent trading. At the time of writing, the Bitcoin price was hovering around $8,490, according to data from cryptocurrency tracker Coinmarketcap.

Bitcoin and the cryptocurrency market as a whole performed poorly last week, contrary to expectations that Coindesk’s Consensus conference, which was held on May 14-16 in New York, would have a positive impact on prices. Among the observers predicting a price boost was Fundstrat Global Advisors’ head of research Tom Lee, who admitted on Friday that his forecast was wrong.

“Given conferences like Consensus are chances for the community to gather in a centralized place and meet constituents new to the community (growth in attendance), it seems natural that the combination of ‘sanity check’ (all is OK and progress is happening) plus ‘new interest’ (incremental attendance) should strengthen the crypto-community’s conviction,” Lee wrote in a note to clients, as quoted by Bloomberg. “And coupled with growth in incremental constituents, should have aided crypto-currency prices.”

Lee also said that the crypto market needed a “trifecta of progress”: “(i) institutional custody/tools; (ii) buy-in by banks/investment managers; (iii) regulatory clarity (3 of 3 needed)”.  “We got progress on (i) and (ii),” he wrote on Twitter.

Lee also noted that cryptocurrencies still faced “significant internal resistance and hurdles within traditional financial institutions”, but added that “it is encouraging, nonetheless, that a large share of incremental attendance are financial institutions”.

Fundstrat still forecasts that Bitcoin would reach $25,000 by the end of the year.

In today’s trading, the Bitcoin price stood at $8,492.01, as of 11:15 BST. The digital coin has gained 1.9% in the past 24 hours.

For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.

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