Speaking on CNBC’s “Squawk Box” Thursday morning, Wall Street analyst and co-founder of Fundstrat Global Advisors Tom Lee predicts Bitcoin price will hit $22.000 by the end of 2018. This is 20% less than his previous forecast.
Tom Lee Predicts Bitcoin Price
According to Tom Lee, the fair Bitcoin price should be 2.5 times higher than the mining cost. Let’s note, now Bitcoin mining costs approximately $ 7.000 However, according to Tom Lee’s forecast, the cost of Bitcoin mining will reach $9.000 by the end of 2018.
He also noted that now the first cryptocurrency is at an early stage of its development.
However Tom Lee corrected himself and stated that he’s still sticking with his forecast of $ 25,000. Lee noted that the estimated cost of mining indicated a rate above $ 20,000 – about $ 22,000. Then he added that by the end of the year Bitcoin could reach $ 25,000:
“We still think bitcoin can reach $25,000 by the end of the year or something like that.”
Also, the analyst added that now bitcoin has reached its minimum and will not fall lower. In addition, Lee believes that the Bitcoin price could decrease due to the launch of futures on the Chicago stock exchanges CME and CBOE.
Lee also noted that bear mood this year was more serious than in 2014. Four years ago, it took about 300 days, so that the price of the largest cryptocurrency by capitalization fell by more than 70%. This year, a similar drop occurred within 200 days.
Lee said back in April that the bitcoin price would reach $ 25,000 by the end of $ 2018. Since then, Bitcoin price has only fallen. Despite these disappointments, Lee still adheres to the optimistic forecast. We just need to wait only six months to check his Bitcoin price prediction.
BTC is trading today at about $6.800