Bitcoin (BTC) is likely to end 2018 at an ‘explosively’ high value, according to Fundstrat’s Tom Lee.

The analyst made the prediction when he appeared on CNBC’s “Trading Nation” show aired on August 25. He based his analysis on a correlation between Bitcoin and a number of emerging markets.

Bitcoin has been trending downward since it peaked at about $20,000 in December 2017. Many weary investors have wondered when this year-long decline and sideways trade would end.

But according to Fundstrat Global Advisors’ Head of Research Tom Lee, the price of the top cryptocurrency will still reach a new all-time high before the end of the year.

Tom Lee previously predicted that Bitcoin’s price will surpass $20,000 by year-end reach new highs.

Bitcoin has traded above $6k for most of this month as it fails to make any sustained upsides. If, however, we have to take Lee’s word, the leading digital asset has the potential to gain over 65 percent between now and the end of the year.

Lee has maintained that hedge funds have not been buying into funds that are based on emerging markets due to the increased sell-off risks.

It, in turn, has led to reduced trading activity within these markets, a scenario that sees the hedge funds keep off buying bitcoin too.

Yet, according to him, the current downtrend will not last long.

Lee uses the correlation between BTC and, for example, BlackRock’s iShares MSCI Emerging Markets ETF to draw his conclusions.

According to Lee, both BTC and the Emerging Markets could be said to have peaked at the same time earlier this year. He also notes that both markets have generally been “in a downward trend” since then.

Tom Lee, one of the staunchest believers in bitcoin, has remained adamant about the coin’s fortunes in 2018. He believes that if the emerging markets take a new direction that sees an improved performance, then the same would trigger a price upsurge for bitcoin.

“Until emerging markets begin to turn, I think in some ways that correlation is going to hold and tell us what sort of the risk on mentality is those buyers aren’t buying bitcoin.”

The Fundstrat researcher has been criticized in the past, especially with regard to Bitcoin’s performance and his prediction.

But Lee has always maintained that the leading cryptocurrency is on track for huge gains. and in the recent interview, he said that the prices of both BTC and that of assets in the emerging markets will soon begin to climb.

Lee, who owns bitcoin and has been among the biggest bulls on Wall Street, sees the tide changing in favor of both areas of the market — he said that one factor that affects these prices will be the weakening of the U.S dollar as well as if the U.S Federal Reserve stops hiking interest rates.

He was also optimistic of the big institutional money waiting in the wings that are going to inject a lot of impetus and growth within the cryptocurrency space.

These are the factors that could play a big part in Bitcoin’s late surge towards a new all-time high as predicted by Tom Lee.

“I still think it’s possible,” said Lee, and then added:

“Bitcoin could end the year explosively higher.”

The latest bullish stance Lee has taken does not stray from his earlier prediction. He has even advised that it would be premature to declare the top coin dead.

As long as the crypto holds above current price levels and volatility stays low, the market should expect to see another Bitcoin boom in 2018.