Financial analyst and co-founder of Fundstrat Global Advisors Tom Lee a few have lowered their previous projections of bitcoin prices, however, continues to believe in its growth and believes that by the end of the year the first cryptocurrency can rise to $15,000 per coin. Such a statement he made in an interview with CNBC.
In may, when bitcoin was worth over $8,000, Tom Lee predicted that before the end of the year, its price will rise to $25 000, but in July revised its forecast, calling mention the figure of $22 000. Your forecast it based on that, the fair value of cryptocurrency should be 2.5 times higher than the cost of its production, estimating the figure at $9000 by the end of 2018.
A similar position he holds now, talking about the need to start from “point of sustainability” – the level at which the cost of mining bitcoins corresponds to the trading rate. According to Fundstrat, devices S9 Antminer from Bitmain this level at the moment fell to $7000. If this also lowered to a value of 2.2, the ratio between price and cost of mining a single bitcoin.
On this basis, and the analyst put the figure at $15 000. Does not bother him and the current overall negative trend in the markets, and culminated in a sharp decline in bitcoin prices earlier this week.
“Bitcoin fell below the psychological mark of $6,000 dollars, what was the cause of a new wave of pessimism. But we believe that much of this decline falls on pessimistic investor sentiment, not on fundamental factors,” said Tom Lee.
He also noted that greater involvement of institutional investors in cryptocurrency, you need the infrastructure,” referring to this, for example, initiatives, Fidelity and Bakkt.
As at 15:00 UTC Saturday, November 17, the average rate of bitcoin, according to CoinMarketCap, $5546.