Managing partner of Fundstrat Global Advisors Tom Lee (Tom Lee) lowered its forecast for prices of bitcoin from $25 thousand to $22 thousand by the end of 2018. This he said during a speech at the Asia Blockchain Summit in 2018, which was held in Taiwan.
According to Lee, the price of bitcoin needs to be twice higher than the cost of mining. Given that currently the production cost of BTC is $9100, then doubling this figure, taking into account other variables suggests that until the end of 2018, the price of bitcoin will reach $22000.
Li pointed out that to date, the ratio of bitcoin prices to the cost of mining is less than 1, so the mining pools will be to exert pressure in the direction of increase of quotations, in order to make a profit.
Recalling he created the “Index of misery bitcoin” (Bitcoin Misery Index, BMI), Lee said that the cryptocurrency has already reached the bottom. According to the analyst, BMI is now under 30 and it can be interpreted as a bullish signal, since the closer this index is to zero, the stronger a recommendation to purchase.
Among the reasons why the price of bitcoin remains well below the record levels recorded last year, Tom Lee called the uncertainty in regulation. He also suggested that the drop in prices could affect the launch of futures kontraktov. Previously, the same opinion was expressed by Japanese economist Yukio Noguchi (Noguchi Yukio).
Lee also noted that bearish sentiment on the stock market this year are more pronounced than during the correction 2014. Four years ago, bitcoin took around 300 days to drop by 70%. This year, a similar collapse occurred within 200 days.
Earlier you repeatedly stated that he believes in the restoration of bitcoin after the fall.