Tom lee a cryptoanalyst has cut down his Bitcoin price
Tom lee a cryptoanalyst has cut down his Bitcoin price prediction for the year-end of 2018 from $25,000 to $15,000. However looking at the free-fall that crypto world is experiencing at the moment, it has to gain almost 3X the current price to reach the $15,000 mark, within six weeks.
Lee gives a breakdown of the price he has arrived at; he says the point at which the mining cost aligns with that of the trading value of the BTC is currently at $7,000, down from $8,000. An analyst from Fundstrat Global Advisors believes the year-end price of the Bitcoin is roughly 2.2X the estimated Break-Even price of $7,000. Thus, the figure of $15,000 came into the picture. However, not less than a month ago, he was convinced that the prices can still surpass the all-time high estimate of $20,000.
Talking about the recent slump in the market, Lee suggests the negative wave of receding prices are a result of pessimism rather than a fundamental flaw in the architecture. He says,
“We believe the negative swing in sentiment is much worse than the fundamental implications”.
Lee says, he is still optimistic about the recovery, since many new institutions like bakkt Fidelity are going to make an entry into the market at the end of the year might lead the bull upwards.
Well, Not Everyone Voice The Same Opinion
Northman Trader founder Sven Henrich published a chart with his Twitter followers comparing the trading prices of BTC with that of lee’s estimation. The followers were quick to respond and troll Lee for his absurd calculations.
Tom Lee slashes $BTC price target by nearly in half to $15K target in 6 weeks. pic.twitter.com/0dcBVQFZYu
— Sven Henrich (@NorthmanTrader) November 17, 2018
Others from the Crypto world also countered the claims made by Lee.
pic.twitter.com/36BKDs8C8e
— Marcus Grams🇨🇩🇨🇦 (@driver95243) November 17, 2018
In 2017, Lee while explaining his predicted values compared the BTC with Gold of 1980’s where people looked at it as a sound investment against the Fiat currencies. He further explained,
“If Bitcoin captures the “5% of just the gold market, it’s USD 25,000. But 5% seems like an awfully small number. Let’s say it’s 10 or 15. Then bitcoin could easily be in the USD 100,000 range,”