Bitcoin (BTC) Will Recover To Hit $15K Says Fundstrat’s Tom Lee
Crypto analyst and fervent Bitcoin bull Tom Lee now says that the leading cryptocurrency Bitcoin (BTC) will reach a high price of $15,000 by the end of 2018.
The readjustment and slashing of his original forecast of $25k comes at a time when the latest crypto bloodbath has seen the price of BTC hit a new low below $5,000.
According to XBT.net, the crypto market is trending in the red with coins losing over 10 percent in the last 24-hours as Bitcoin took another nose dive earlier today.
Bitcoin’s price has slid 12 percent in the last 24 hours even as the altcoin market struggles to rally support and avoid more bleeding. The cryptocurrency market capitalization has continued to shed billions of dollars and currently is under $170 billion- the lowest valuation year-to-date.
It’s amid these price slides and uncertainties that Tom Lee, the co-founder of advisory firm Fundstrat Global, has given the new prediction.
According to CNBC, Lee believes that the top cryptocurrency will rebound from the current bloodbath and recover in time to reach the $15k price.
And here is his reason: Bitcoin could soon reach its “break-even point.” In other words, the cost of mining a single BTC will have matched the coin’s trading price. As data provided by Fundstrat reveals, the confluence between the two points is $7,000.
Bitcoin must rise above current prices
Per Lee’s assertion, Bitcoin’s current price is way below that point at the current $4,988 trading value according to XBT.net.
However, according to Lee, the top digital asset has always rebounded stronger whenever it has broken below “breakeven” CNBC said quoting a note Lee wrote to investors last Friday.
His optimism that Bitcoin will recover is however tinged with a certain fear of the current price decline. He said that having BTC trading at prices “below that psychologically important $6,000” could result in a “wave of pessimism.”
He also added that market negativity could be destructive to recovery possibilities than would fundamental implications.
In Lee’s opinion, certain events within the crypto ecosystem could be the catalyst to the latest price decline.
The biggest threat at the moment is the impact the Bitcoin Cash (BCH) hard fork. The aftermath of the tumultuous hard fork has left the community divided, further fueling the uncertainty surrounding the crypto markets.
The two chains, Bitcoin Cash ABC and Bitcoin Cash SV, continue to vie for the hash rate. Furthermore, BCH currently trades at $361, with losses of 30 percent in the past seven days, something that analysts ponder may lead to an escalation of volatile events.
What direction Bitcoin takes in the next few days or weeks will be an indication of just how far or close Lee is with his new prediction. But to get there, BTC prices will need to rally nearly 200 percent in the next 40+ odd days.
This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.