The Bitcoin bullish figure Thomas Lee, the head of research at Fundstrat Global Advisors, said that the market is wrong about Bitcoin’s real price. In a recent article released by Thomas Lee, said that Bitcoin’s fair value is between $13,800 and $14,800. Earlier this year, Lee said that Bitcoin was going to end the year close to $15,000.
Thomas Lee Believes Bitcoin Should be Worth At Least $13,800
In a recent article, Thomas Lee said that Bitcoin should be traded at least around $13,800. However, Bitcoin is currently being traded close to $3,300. This year was not good for Bitcoin and other virtual currencies. The popular digital asset has lost more than 80% of its value since its all-time high in December 2017.
In order to reach this price, Thomas Lee takes into account different things. For example, he says that given the number of active wallet addresses, usage per account and factor influencing supply, the price should be no less of $13,800 but also no more than $14,800. Nevertheless, he did not provide further info about how he balanced these variables.
About it, he wrote:
“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.”
He went on saying that Bitcoin’s acceptance as an asset class is a key factor to take into account. In 2019, these things will drive Bitcoin’s price up, he said. For example, if Bitcoin wallets are just 7 percent of Visa’s 4.5 billion account holders, Bitcoin’s price should be close to $150,000 for Bloomberg.
A few weeks ago, Thomas Lee updated his price target for 2018. While earlier this year he said that Bitcoin was going to be traded around $25,000 by the year end, he updated it to $15,000. Nevertheless, he did not want to provide an updated price for Bitcoin this year.
“We are tired of people asking us about target prices,” he said.
Clearly, the bear market has surprised everyone in the community. Even the most bearish individuals did not believe that Bitcoin could be traded under $4,000 in 2018. Nonetheless, this happened. Indeed, Bitcoin could keep falling and reach new lows in more than a year. Additionally, this is Bitcoin’s third largest drop in history and if it keeps falling under $2,800 it could be the second largest drop ever recorded in Bitcoin’s 10 years’ history.