A wall street analyst called Tom Lee was the first to cover Bitcoin and has remained bullish about the cryptocurrency market since. In his latest report, Fundstrat Global advisor’s head of research called for some high numbers in the coming years.
Having analyzed 22 bitcoin depreciations of more than 20% he found that recoveries take 1.7 times the duration of a decline in a bull market, to which he added that this is still a bull market. Given that trend, Bitcoin would make a complete recovery by July.
“We expect bitcoin’s major low to be $9,000, and we would be aggressive buyers around that level. We view this $9,000 as the biggest buying opportunity in 2018.”
Lee said in his report on Thursday
Lee’s formula for valuing bitcoin measures money supply growth, the ratio of alternative currencies like gold to the money supply and a digital currencies share of those alternatives. He also expects to see substantial interest in crypto commodities from institutional investors in the coming year.
Lee said in his report that the $10,000 mark, which Bitcoin recovered this week, is an important psychological key for investors watching the recovery. Noting that the bottoms of the recent decline have all been V-shaped he went on to predict some big numbers.
Lee said on CNBC’s Fast Money that he expected bitcoin to go to $25,000 by July of this year and then double that by years end. $25,000 was a mark he previously set a four-year goal, which he now has reassessed to $125,000.
These may sound like grandiose predictions but coming from the man who called the new year drop of roughly 50% a buying opportunity not completely unexpected.
“We can see a case for Bitcoin’s resilience
here given the sharpness of the recent decline.”