Tom Lee keeps $ 25,000 in Bitcoin's price forecast and cites three support factors
Fundstrat co-founder and strategist Tom Lee maintains that Bitcoin (BTC) will reach $ 25,000, CNBC said on May 23. Lee identifies three key factors that make him believe the price will rise after the 2017 high.
On Wednesday, the BTC fell below $ 8,000 and traded about $ 7,500, losing most of the gains made between mid-April and early May. With the fall of Wednesday, the BTC fell 41% this year. Lee believes the fall is due only to "typical cryptomedean volatility," and explains his optimistic stance with three key factors.
The first key factor is the production and replication costs of the BTC. In CNBC's "Futures Now" program on Tuesday, Lee said the BTC was "trading at cost" because the price of production was almost equal to the trading price. As, according to Lee, the production cost for the production of BTC was about $ 6,000 on Wednesday, still worth more than its cost of mining.
Among the key factors that could trigger a possible price hike, Lee cites institutional investors who, while interested in crypto space, have not fully entered the industry due to regulatory uncertainties. He said:
"I think institutional investors have gained a lot of interest, and they have not yet entered into crypto-currencies because there is still some regulatory uncertainty. But such definitive allocation of crypto-currency as a class of assets will be a powerful reason why Bitcoin recovers."
Finally, the data compiled by Fundstrat show a historical trend, for which Lee recommends that investors keep their BTCs. He said:
"Historically, 10 days make up all the performance in a single year of the price of Bitcoin." If you just bought those 10 days, Bitcoin drops 25% a year. However miserable Bitcoin seems to be for $ 8,000, $ 8,000 to $ 25,000. It will happen in a handful of days. "
Earlier this month, Fundstrat Global Advisors revealed that the survey put the BTC price at $ 36,000 in 2019, based on historical averages. Analysis of the relationship between BTC's mining costs and price analysts has led to the prediction that the crypto-currency will reach between $ 20,000 and $ 64,000 by the end of 2019. At the moment, the BTC is trading at US $ 7.594.
Fundstrat co-founder and strategist Tom Lee maintains that Bitcoin (BTC) will reach $ 25,000, CNBC said on May 23. Lee identifies three key factors that make him believe the price will rise after the 2017 high.
On Wednesday, the BTC fell below $ 8,000 and traded about $ 7,500, losing most of the gains made between mid-April and early May. With the fall of Wednesday, the BTC fell 41% this year. Lee believes the fall is due only to "typical cryptomedean volatility," and explains his optimistic stance with three key factors.
The first key factor is the production and replication costs of the BTC. In CNBC's "Futures Now" program on Tuesday, Lee said the BTC was "trading at cost" because the price of production was almost equal to the trading price. As, according to Lee, the production cost for the production of BTC was about $ 6,000 on Wednesday, still worth more than its cost of mining.
Among the key factors that could trigger a possible price hike, Lee cites institutional investors who, while interested in crypto space, have not fully entered the industry due to regulatory uncertainties. He said:
"I think institutional investors have gained a lot of interest, and they have not yet entered into crypto-currencies because there is still some regulatory uncertainty. But such definitive allocation of crypto-currency as a class of assets will be a powerful reason why Bitcoin recovers."
Finally, the data compiled by Fundstrat show a historical trend, for which Lee recommends that investors keep their BTCs. He said:
"Historically, 10 days make up all the performance in a single year of the price of Bitcoin." If you just bought those 10 days, Bitcoin drops 25% a year. However miserable Bitcoin seems to be for $ 8,000, $ 8,000 to $ 25,000. It will happen in a handful of days. "
Earlier this month, Fundstrat Global Advisors revealed that the survey put the BTC price at $ 36,000 in 2019, based on historical averages. Analysis of the relationship between BTC's mining costs and price analysts has led to the prediction that the crypto-currency will reach between $ 20,000 and $ 64,000 by the end of 2019. At the moment, the BTC is trading at US $ 7.594.