- Fundstrat’s Tom Lee has adjusted his Bitcoin price prediction to $125,000.
- He mentions that Tesla’s reversal will encourage crypto to focus on renewables.
- Currently, Bitcoin’s value trails around $45,490.
Fundstrat’s Managing Partner Tom Lee has adjusted his Bitcoin price prediction from $100,000 to $125,000 by year-end. This news brings fresh hope for Bitcoin’s bounce-back, following Elon Musk’s reversal.
The Tesla CEO recently backed out of his decision to accept BTC payments for Tesla. The company cited the crypto’s adverse environmental effects as a reason. Despite this, Tom Lee remains optimistic that bitcoin bulls are here to stay.
“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,” he told Insider.
“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’s statement comes as a surprise, as Bitcoin fell by more than 15% post the Tesla decision. Other top cryptocurrencies, such as ETH and XRP also plunged alongside it.
He pointed out that other people in the company and their ESG concerns must have influenced Musk’s reversal from Bitcoin. This is expected, as BTC’s energy consumption has created quite a controversy. It would, in fact, clash directly with the way Tesla positions itself.
Customers are bound to question why an environment polluter is working with a company that claims to be working for a sustainable future. Hence it is likely that major stakeholders in Tesla must have pressured Musk into making the decision.
However, Tom Lee believes that this will encourage the adoption of greener practices in the crypto industry. For this reason, he remains adamant that Bitcoin will climb back higher. At the time of writing Bitcoin trails around $45,590, up from a two-month low