Bitcoin-bull Tom Lee has nearly halved his BTC prediction from $25,000 by the end of the year to $15,000.
Also, this week has not been the best for the «big daddy» as it dropped from $6,360 to $5,780 on November 14. As of writing, bitcoin is traded at $5,568, according to Coinmarketcap.com.
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Tom Lee Takes His Words Back
Fundstrat’s head of research Tom Lee lowered his 2018-end price target by almost half to $15,000. This is 2.69 times higher than what bitcoin has been traded recently.
Wall-Street’s crypto supporter believes bitcoin will recover. In a note, on November 16 Lee told clients that BTC never «sustained a move below breakeven.» The breakeven point is level at which crypto-generation expenditures fit the trading price, as per CNBC.
Fundstrat’s data science crew found out that the breakeven level has decreased to $7,000 from previously estimated $8,000. However, it needs to be said that the level was estimated for S9 mining machine by Bitmain.
Based on the estimations, Lee said the fair price for BTC would be approximately 2.2 times the novel breakeven price of $7,000. However, at the moment bitcoin’s price is pretty lower than this. CNBC emphasizes that this week most of the cyber-coins experienced double-digit oscillations, while bitcoin saw its lowest this year.
In particular, Lee said to his clients that the recent wave of doom and gloom has been raised because bitcoin dropped below «psychologically important $6,000.» However, he singled out that pessimism is worse than «the fundamental implications.»
One of the Fundstrat’s founders also added it was crypto-particular events that defined the price swings. Among them, there has been the debatable argument regarding BCH. Recently, the crypto-community actively discussed the hard fork of bitcoin cash — into «Bitcoin ABC» (core BCH) and «Bitcoin SV» (“Satoshi’s Vision»). As it is known, BCH itself is a result of BTC’s fork.
Despite anything, Lee still hopes institutional investment flows will support bitcoin’s price during the period before 2019 comes. He also said that the infrastructure for institutional involvement has partially been established the launch of ICE, Starbucks and Microsoft-backed Bakkt and Fidelity.
Interestingly, Lee is not the only crypto-bull who expect institutional flows to enter the bitcoin ecosystem. Recently Mike Novogratz, a former Goldman Sachs partner predicted such inflows at the beginning of 2019 that will lead to bitcoin’s price increase to $20,000.
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