Tom Lee is one of the best-known bitcoin bulls and senior executive at Fundstrat Global Advisors. In an interview with Bloomberg, Lee said that the “fair Bitcoin price lies well above the current price.”
In recent days, the Bitcoin price plunged to a significant low of $ 3,300, a value not seen since December 2017. Many market analysts predicted the bottom at $ 2,500, while some do foresee the end of BTC as a currency. Unimpressed by the current situation, Tom Lee caused an “irrational market” for the current price of BTC.
Tom Lee: The Bitcoin advocate
In a statement to investors released yesterday, Lee spread a positive message, talking about the “fair value” of Bitcoin (BTC). He suggests considering factors like the number of active Wallet addresses, usage per account and other factors such as the deflationary supply of the currency, between 13.800 and 14.800 USD, to estimate the price. BTC is currently being negotiated at around $ 3,300. A further decline is possible due to market sentiment. Lee explained:
“Fair value is significantly higher than the current price of Bitcoin. 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.”
Some continue to blame Tom Lee for his predictions. After all, in May he predicted that Bitcoin would get back to $ 25,000 by the end of 2018. But Lee remains confident about the outlook for the industry and his own rating. He makes an irrational market responsible for the current price level.
Bitcoin at $ 150.000?
When Bitcoin’s price skyrocketed last year, Lee said that the sharp rise was caused by the macroeconomic “collapse”, as well as treasury sales during the tokenization process. Initial Coin Offerings (ICOs) in late 2017 and early 2018 have since declined due to overfunding, poor business models and an increase in fraud. As a result, it is now more important than ever for the adaptation of cryptocurrencies to gain momentum.
The goal for BTC is to become a global currency. According to Lee, if BTC Wallet holders increase to about 7 percent of the 4.5 billion Visa account holders, the market value could rise to as much as $ 150,000.