Fundstrat’s Tom Lee has previously issued bullish stances on Bitcoin – though now the advisor has lowered his year-end prediction, positing that Bitcoin will only touch $22,000 USD in place of $25,000 USD.
Lee’s remarks come after a harsh series of months for Bitcoin – the pre-eminent cryptocurrency began trading at $14,112 USD on January 1st this year, and has since battled to retain such momentum. At press time, Bitcoin trades for $6,555 USD.
Speaking on CNBC’s Fast Money, Lee outlined his belief that “Bitcoin has historically traded at 2.5 times its mining costs. It’s not out of the question that it could be over $20,000 by the end of the year at fair value… What I was trying to illustrate was that given where mining costs will be and applying the historical average of 2.5 times mining costs, that would imply fair value over $20,000, roughly $22,000.”
Lee retained his optimism, however, noting his view that “We still think bitcoin can reach $25,000 by the end of the year… or something like that.”
Lee has previously indicated his belief that Bitcoin would top $25,000 USD values by the end of 2022, but proceeded to moved that claim forward by four years in January.
Earlier this year, Lee predicted that Bitcoin will see values north of the $25,000 USD mark by the end of 2018, and further elaborated that he sees the cryptocurrency reaching values above the $125,000 USD mark by 2022.
Beyond his price predictions, Lee is also acclaimed for his ‘Bitcoin Misery Index’ – a contrarian index which explores how ‘miserable’ Bitcoin holders are based on current market prices. As such, Lee has noted that the present cryptocurrency bear market has arrived far more aggressively than previous market downturns – in 2014, markets collapsed by as much as 70% over 300 days, while 2018 has seen a similar recession occur over just 200.