Tom Lee, a financial analyst, and co-founder of Fundstrat Global Advisors, somewhat lowered his previous predictions regarding the price of Bitcoin, but still believes in its growth and believes that the first cryptocurrency can rise to $15,000 per coin before the end of the year. He made this statement in an interview with CNBC.
In May, when Bitcoin cost more than $8,000, Tom Lee predicted that its price would rise to $25,000 by the end of the year, but in July he revised his forecast, calling the figure at $22,000. He based his forecast on the fact that the price should be 2.5 times higher than the cost of its mining, estimating this figure at $9,000 by the end of 2018.
He adheres to a similar position now, speaking of the need to build on the “self-sufficiency point” – the level at which the cost of mining Bitcoin corresponds to its trading rate. According to Fundstrat, for Bitmain S9 Antminer devices, this level has now dropped to $7,000. At the same time, Lee also lowered the ratio between the price and the cost of bitcoin mining to 2.2.
This is the basis on which the analyst calls the figure of $15,000. The current overall negative trend in the markets, which culminated in a sharp decline in the price of Bitcoin earlier this week, does not bother him either.
“While bitcoin broke below that psychologically important $6,000, this has led to a renewed wave of pessimism. But we believe the negative swing in sentiment is much worse than the fundamental implications,” said Tom Lee.
Currently Bitcoin is trading at $5,600 with a market cap of $97,357,288,593, holds 52.5% of the crypto market which is $185,323,609,846 by CoinMarketCap.