Tom Lee trimmed his Bitcoin end of the year  prediction down to $15,000 from his earlier prediction of $25,000 in a statement recently. Bitcoin is among the cryptocurrencies that took a massive hit due to the recent sell-off that was set-off by the contentious arguments on Bitcoin Cash fork.
Thomas Lee aka Tom Lee is the co-founder of Fundstrat Global Advisors and is one among the people who are known for their wild predictions on Bitcoin [BTC].
Tom Lee explained that this new prediction came as a result of Bitcoin dipping below the ‘break-even” point. Break-even point is the level where the mining costs are equal to the trading price. According to Fundstrat’s data science team, the break-even point has come down to $7,000 as compared to the earlier break-even price, which was predicted to be $8,000. These tests were conducted on Bitmain’s S9 miners.
Based on the break-even price, Tom Lee re-predicted the price that Bitcoin might hit at the end of the year.
“While bitcoin broke below that psychologically important $6,000, this has lead to a renewed wave of pessimism, but we believe the negative swing in sentiment is much worse than the fundamental implications.”
Lee said the recent double-digit crash of most cryptocurrencies like Ethereum [ETH], XRP and Bitcoin were triggered by “crypto-specific” events. The most obvious crypto-specific event was the “hash wars” which was due to the forking of Bitcoin Cash to Bitcoin ABC and Bitcoin SV.
Lee first predicted the price of Bitcoin would reach $25,000 by the EoY on July 5, 2018, which sent shockwaves and speculations in the crypto community.
Lee’s had said:
“Bitcoin has historically traded 2.5 times its mining cost, so it’s not out of the question that it could be $20,000 by the end of the year.”
The current price of Bitcoin is $5,530, and for it to reach $15,000 by the EoY, the price has to rally by an excess of 171.24%. The recent sell-off has caused the market cap of Bitcoin to collapse below the $100-billion line and is currently at $96.12 billion.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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