We reported weeks ago that Tom Lee predicted an increase in the Bitcoin price after the consensus conference. In an interview with CNBC, the analyst explained why the conference did not trigger an increase.
What had happened about Bitcoin Code
Following the pattern of the last three years, the experts set out on a major crypto rally. The event was a success, but Bitcoin prices fell. By the end of the event, Bitcoin had lost around three percentage points. Lee initially admitted that he and other experts were too optimistic about the Bitcoin Code expected high attendance at the Consensus Conference. During the interview, Lee identified the lack of clarity about regulatory requirements as part of the reasons why the conference did not deliver the expected results.
Lack of legal clarity
Lee pointed out that there was a lack of clarity regarding crypto-regulation. According to him, nothing has changed during the event in terms of regulation or its direction. Many did not expect a regulatory outcome, but the lack of progress is disappointing.
CRYPTO: #Consensus2018 rally did not happen, very disappointing. What we needed was a trifecta of progress: (i) institutional custody/tools; (ii) buy-in by banks/investment managers; (iii) regulatory clarity (3 of 3 needed), but we got progress on (i) and (ii). Full text below
Despite the lack of price rally during the event, there are some positive circumstances. The bitcoin price also seems to react and correct itself upwards. We reported days ago that the Bitcoin price did not rise in recent years during the Consensus event, but only moved up weeks later. The information graphic regarding the last conferences and their development can be viewed here. Tom Lee was positive about the conference despite the lack of a direct increase:
IT IS A GREAT CONFERENCE TO BRING TOGETHER MANY PEOPLE FROM ALL OVER THE WORLD. THE QUALITY OF THE PEOPLE WHO WERE THERE WAS AMAZING.
Tom Lee further estimates that Bitcoin will be worth around $25,000 by the end of 2018. In our opinion, the Consensus Conference has a strong impact on the Bitcoin price. The number of participants has increased to 8,000, although the ticket price has risen immensely. This conference brought together crypto-nerds and institutional investors/bankers. This year’s audience balance should by no means be seen as a disadvantage, but as a sign of what Bitcoin and the crypto industry have achieved in the traditional financial world. Chances are good that the Bitcoin Award will make further gains this year.