Tom Lee explains why he thinks the consensus that was predicted to affect the price of cryptocurrencies didn’t have any effect on them.
Fundstrat Global Tom Lee who initially predicted that Bitcoin would sell as high as $25k by the end of the year commented why the long-anticipated consensus did not affect the price of Bitcoin.
Why Didn’t the Consensus Cause a Crypto Price Hike?
During an interview with CNBC, Tom Lee explained why the consensus didn’t affect the price of Bitcoin. Most people in the cryptoverse believed that the consensus would cause a hike in cryptocurrency prices during the summit and afterwards. Experts based their expectations on the pattern of the last three years.
The Alas Consensus, however, was hosted effectively but it did not influence the price of cryptocurrencies positively. In fact, prices dropped since then with the total market capitalization for cryptocurrencies falling by $40 billion while the conference took place. By the end of the conference, the price of Bitcoin had declined by up to 3%.
Before giving his explanation, Lee acknowledged that he and others in the cryptoverse were optimistic that the consensus would cause a hike in price because of the crowd. Also, he said that the summit was a road to reinvigoration following months of uncertainty in the cryptoverse. He noted that a lack of regulatory clarity and the muted custodial announcement was what reduced the confidence in the market.
No Regulatory Clarity
According to Lee, the lack of clarity in the cryptocurrency industry is part of the reasons why the price of cryptocurrencies didn’t spike with the consensus. There was no progress on the crypto regulations of the government during the consensus. He stated that although the cryptocurrency enthusiasts had expectations of what the results of the regulatory policies will be, they didn’t expect a particular regulatory outcome. However, the fact that there hasn’t been any progress at all was a disappointment.
Irrespective of the current situation, Lee believes that Bitcoin will still get to $25k by the end of the year.