Thomas J. Lee, one of the most bearish stock strategists on Wall Street, is feeling a lot more optimistic about the prospects for bitcoin.
The cryptocurrency could reach $6,000 by the middle of 2018, according to a note Friday from Lee, the Fundstrat Global Advisors co-founder and former chief U.S. equity strategist at JPMorgan Chase & Co. He said user accounts are likely to rise 50 percent and usage per account to climb 30 percent.
Every 10% increase in user accounts adds $222 to bitcoin’s value, and each 10% rise in activity per account adds $274, Lee said.
Lee still expects bitcoin to reach about $25,000 by 2022 amid institutional sponsorship, better transaction platforms and increasing public adoption.
Traders should watch out for "another volatile consolidation period" into the end of August since bitcoin is getting close to resistance levels with short-term momentum becoming overbought; Fundstrat sees $4,500-$4,800 as the next resistance range.
NOTE: July 7, Biggest S&P 500 Bear Says Bitcoin May Hit $55,000 on Low Supply
NOTE: June 23, Tom Lee, Wall Street’s Biggest Bear, Cuts S&P 500 EPS Estimates
