Tom Lee has cut his year-end prediction for Bitcoin by 20 percent– however still believes the primarily cryptocurrency will top $20,000 per coin in 2018.
‘Or Something Like That’
Tom Lee had formerly held strong on his forecast that Bitcoin 00 would reach a new all-time high of $25,000 by the end of 2018. Now, the only Wall Street strategist to make concrete Bitcoin predictions is scaling back his expectations– but only slightly.The co-founder of Fundstrat Worldwide Consultant informed CNBC’s “Squawk Box”:
Bitcoin has actually historically traded at 2.5 times its mining costs. It’s not out of the concern that it might be over $20,000 by the end of the year at reasonable value.However, Lee later on described on the network’s “Fast Cash “that he “may have misspoke a little bit.”He informed: Exactly what I was attempting to highlight was that provided where mining costs will be and applying the historic average of 2.5 times mining costs, that would indicate fair value over$20,000, roughly$22,000. We still think bitcoin can reach $25,000 by the end of the year or something like that.Lee, a noted permabull, refuses to budge more than a few inches on his prediction– which he bases mainly around the break-even cost of Bitcoin mining.”The factor bitcoin looks great here is the expense of mining around $7,000 completely packed,” he stated,”And the trouble is rising. So by the end of the year, it’s going to be$9,000. “Last month, Lee told Bloomberg that Bitcoin’s significant and continual rate declines in 2018 have actually been the outcome of futures contracts ending– keeping in mind then that there had been 6 expirations of futures contracts considering that the CBOE launched Bitcoin futures back in December. According to Fundstrat’s co-founder, the marketplace leader tends to see a decrease of around 18 percent in 10 days prior to the expiration of the futures contracts with prices usually recuperating in the following 6 days.What do you think about Tom Lee’s continued bullishness? Do you believe Bitcoin stands
a chance of revisiting$ 20,000 this year? Let us know in the comments listed below! Images courtesy of Bitcoinist archives, CoinMarketCap.com.