The world's largest crypto-currency in market value continues to be pushed to the downside in 2018, but a longer term provides a different story for investors and analysts. Bitcoin has been trading more than twice its value exactly a year ago, when it was worth $ 2,577.
Tom Lee, the only major Wall Street analyst to issue price forecasts for Bitcoin and founder of Fundstrat, takes into account the whole history of Bitcoin and the latest developments when it updates its target price forecast for the cryptomeo, which before was $ 25,000. Lee told CNBC on Thursday, July 5, that he calculated a new target for the price of the digital currency by the end of the year, now being $ 20,000.
"BITCOIN HAS BEEN HISTORICALLY TRADED 2.5 TIMES OF ITS MINING COSTS. IT IS NOT OUTSIDE ANY ISSUE THAT YOU CAN REACH MORE THAN $ 20,000 UNTIL THE END OF THE YEAR AT A FAIR VALUE. "
Tom Lee Lee, former chief stock strategist at JPMorgan, also pointed out that the new price target is about 200% higher than the current price, which is around $ 6,750.
"THE REASON FOR WHAT BITCOIN REALLY REALLY GOOD IS THE COST OF MINING AROUND $ 7,000 TOTALLY LOADED. AND DIFFICULTY IS INCREASING. THEN, UNTIL THE END OF THE YEAR, THERE WILL BE $ 9,000. "
Cryptomanne miners have already issued about 80% of the 21 million Bitcoins that will already be created. Fundstrat's chief strategist explained that distributed accounting technology is a multidisciplinary story in its early stages, like many other technologies that preceded the blockchain.
"I DID WIRELESS IN THE 90'S. I SAW 20 YEARS OF MOBILE CONVERGENCE AND INTERNET. TO ME, THIS IS NOT SO DIFFERENT, "SAYS LEE.
Tom Lee first issued a forecast of $ 25,000 for the Bitcoin price in September 2017. The digital asset, which accounts for 42.1% of the entire crypto-coin market, according to the CoinMarketCap tool, rebounded sharply in the fourth quarter of 2017, and the momentum reached the mark of US $ 20,000
In May 2018, the analyst said: "The change from $ 8,000 to $ 25,000 happen in a few days."