Tom Lee’s Bullish Prediction
In a recent series of interviews on CNBC, Tom Lee, the co-founder of financial market research firm Fundstrat, reiterated his optimistic outlook on Bitcoin. Lee asserts that the cryptocurrency could see prices ranging between $22,000 and $25,000 by the end of this year. This statement comes after a series of earlier bullish predictions, including a memorable target of $25,000 for 2018.
The Myth of Bearishness
Despite some skeptics interpreting Lee’s lesser price forecast as a retreat, he was adamant that it isn’t. In fact, during his morning segment on Squawk Box, he stated unequivocally, “I do think it’s the first time I’ve ever heard someone thinking something could triple is a bearish comment.” Apparently, the art of cryptic bullishness requires some finesse!
Mining Costs: The Underrated Hero
Lee attributes his revised predictions to an analysis based on Bitcoin mining costs, which he estimates will stabilize at around $9,000 per coin by the end of the year. He suggests that applying a historical average could support a price of roughly $22,000—pulling Bitcoin’s fortunes from the cryptic abyss closer to financial reverence.
Fundstrat’s Proven Strategies
In the ever-turbulent sea of cryptocurrency, Lee’s firm remains anchored in data. Fundstrat’s prior studies articulated that the interplay between mining costs and Bitcoin pricing had historically proven to be a reliable indicator. Back in May, they found that a ratio of 1.8 times mining costs foretold Bitcoin reaching around $36,000 by the end of 2019. Not exactly a bad day at the office if you’re a Bitcoin bull!
Current Market Status
As the market stands, Bitcoin is currently trading at approximately $6,582, reflecting a slight decline of just over one percent. Could this be merely a blip in the grand scheme of Lee’s vision? Only time—and perhaps mining costs—will tell!
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