Tom Lee maintains his price target on bitcoin at $25k, despite some misunderstandings and weak price action as of late.
If you do not recall, Tom Lee has been one of the biggest bulls on Wall Street regarding bitcoin.
In fact, he is one of the few Wall Street guys that dares to put out price predictions on bitcoin at all.
Most of those guys don't watch to attach their name to bitcoin just yet, just in case it fails miserably.
Mr. Lee sees it for what it could become.
Tom Lee is not just some fly by night analyst either...
He worked at JPMorgan for many years, where he was very successful as a stock picker, before launching his own firm known as Fundstrat Global Advisors.
I followed him for several years on CNBC for his macro market calls and excellent stock picks.
He was right far more often than he was wrong, which is rare among most of the talking heads.
He was one of the few bulls back in 2010/2011 calling for an equity rally when the debt ceiling had markets gripped with fear.
He also has been one of the few bulls that has called most of the recent stock market rally as well as the initial Trump rally, again when most analysts said a Trump win would be bad for stocks initially.
Tom Lee's crypto calls have been mostly right as well, with some slight hiccups as of late.
He called for $8k-$10k last year, though I can't remember the exact number, the eventual high blew his optimistic forecast out of the water.
Then he said bitcoin would experience some weakness in the first quarter related to Chinese New Year as well as Tax related selling.
Right again.
However, he did falter on his most recent call...
Lee said that he expected to see a rally around the Consensus 2018 cryptocurrency event, which there was actually a decline.
Then he also said he expected bitcoin to trade around $20k by the end of July, which is not technically wrong yet, but likely will be in a few weeks.
Unless bitcoin can mount a 300% rally in a matter of weeks...
(Source: https://ethereumworldnews.com/tom-lee-clarifies-bitcoin-25k-2018/)
Mr. Lee's latest call:
That being said, his most recent call is for bitcoin to hit somewhere in the range of $25k by year end because, according to his research, bitcoin tends to trade for 2.5X the cost of mining during bullish periods.
With mining difficulty continuing to increase, the projected cost is around $9k per coin by the end of the year, which gets him right near his $25k prediction.
Whether that turns out to be true or not is anyone's guess.
Also, given some of the new proposals recently by the bitcoin core development team which would make mining more decentralized and more energy/cost efficient, what will that do to Mr. Lee's price forecasts that are mostly based on cost of mining?
My guess is that he will have to lower some of his longer term price targets on bitcoin as mining becomes significantly cheaper in the future with much need software upgrades.
Either way, $25k by the end of this year is still in play according to Mr. Lee as of yesterday afternoon.
At this point, I will be happy if he is at least half right. :)
Stay informed my friends.
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