Since mid-November bitcoin has been experiencing turmoil when it started falling from the margin of $6,300. As of writing, BTC’s price is $3,311, one of the lowest marks this week (the lowest was on December 7 — $3,288).
The drop has spurred debates in the crypto-community, and even one of the most known Wall Street bitcoin-bulls Tom Lee had to halve his prediction regarding this coin. Lee used to preach that by the end of 2018 BTC would be traded at $25,000 but then he named a less ambitious price of $15,000. Later on, he stood by this forecast.
In a recent note, Lee claimed that the current price of the «big daddy» does not reflect its genuine value. The veteran market analyst is convinced bitcoin is worth more —$150,000 in a long run.
Lee Opines that BTC Price Must be Higher
Tom Lee, one of the Global Advisors’ founding fathers, as well as crypto-enthusiast, in a note on December 13 said bitcoin’s fair price is much higher than what we see today, Bloomberg reports.
Lee believes that in fact, bitcoin is worth $13,800-$14,800. His opinion is based on:
- the quantity of active wallet addresses
- Drivers which affect supply
- usage per account
But why is bitcoin’s price different now? The expert explained that the difference is related to BTC’s 2017 record of $20,000, a macroeconomic “meltdown,” as well as «treasury sales» during ICOs.
“In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently,” added Lee.
What Will Make Bitcoin Grow Again?
Earlier Lee held on his previous $15,000 prediction. This time he named factors which could make bitcoin’s price increase — mass adoption and acknowledgement of it as an asset class.
Moreover, Lee stated, once bitcoin wallets make up 7% of Visa’s account holders (which are 4.5 billion), the «fair value» of BTC would be $150,000 per unit.