Bitcoin has gotten battered as of late, but we may see a Santa Claus rally yet.
Tom Lee of Fundstrat Global Advisors says that bitcoin still should reach roughly $15k by the time that new year's eve ball drops.
Lee had to adjust his previous price target of $25k, citing a renewed round of skepticism surrounding the world's largest cryptocurrency.
Previously Lee had stated bitcoin would hit $25k before the new year.
More about his prediction can be found here:
Why is Lee still positive on bitcoin?
Lee said that bitcoin is in a strong time of the year seasonally. Meaning that based on past trends, bitcoin has done well in November/December.
Also, and more importantly, Lee says the cost of mining bitcoin fully loaded is roughly $7k now.
Historically bitcoin rarely trades for less than 2X the cost of mining, and certainly not less than the cost of mining outright, which is where prices are trading currently.
If you take that fully loaded cost of mining and you take that multiple of 2X and you get bitcoin at $15k.
Basically Lee says that we are seeing extremely bearish conditions that aren't likely to hold up for long.
(Source: https://medium.com/@Scifiscreen/bakkt-to-the-future-d9aaf3abe1a4)
Possible catalysts?
Lee mentioned Bakkt expecting to launch in December as a major catalyst for bitcoin going forward.
That, as well as Fidelity and a couple other large well known firms, are all building out custody solutions and expected to launch within the next few months.
Which will open the door for more institutional type investors.
Combine all of that with the seasonality aspect and Lee still says that bitcoin could still more than double from here before this year ends.
I for one sure hope he is right.
Stay informed my friends.
Image Source:
https://www.cnbc.com/2018/08/07/tom-lee-bitcoin-is-regaining-market-share.html
