The Bullish Outlook of Tom Lee
Tom Lee, a well-known Bitcoin bull from Fundstrat, has made some interesting waves lately, especially in his recent appearances on CNBC. With a price target bouncing between $22,000 and $25,000 by the end of the year, Lee’s optimistic predictions are keeping the cryptocurrency community on their toes.
Clarifying Misunderstandings
During his Thursday morning segment on “Squawk Box,” Lee hinted that Bitcoin’s pricing could shift to over $20,000, which some interpreted as a dip in his bullish attitude. He was quick to clarify that this wasn’t a bearish retreat but rather a calculation based on historical trends connecting Bitcoin prices to mining costs. After facing pushback, he reiterated, “I think I may have misspoken a little bit… applying the historical average of 2.5 times mining costs would imply fair value over $20,000 – roughly $22,000.” Talk about a roller coaster ride!
The Mining Costs Connection
What’s more interesting is how Lee determined his estimates. He asserts that by the end of this year, the mining costs of Bitcoin will settle around $9,000 per coin. With cryptomarkets showing a tight connection between production costs and market prices, this insight may actually turn out to be a lifeline for Bitcoin values.
Historical Context and Future Predictions
Lee’s price estimation of $25,000 isn’t new; it originally emerged back in January 2018 when he projected Bitcoin would reach the same milestone before the year concluded. Come March, he aimed even higher, forecasting a staggering $91,000 by 2020. It’s safe to say that Lee’s got high hopes and an unyielding spirit!
Fundstrat’s Analysis Insights
In a prior analysis released in May, Fundstrat showcased the correlation between mining costs and Bitcoin’s overall price trajectory, noting that the mining cost tends to act as a support level in the long run. Their prior statistics suggested a 1.8 times average, projecting a $36,000 price point by the end of 2019. Kind of makes you want to hop on the Bitcoin bandwagon, doesn’t it?
The Current Landscape
As of now, Bitcoin is priced at about $6,582, down slightly on the day. While these prices might seem low compared to Lee’s visions of grandeur, Bitcoin enthusiasts know that the market can behave unpredictably, swinging just like a pendulum on caffeine!
