Co-founder and strategist at Fundstrat Tom Lee (Tom Lee) is sticking with his forecast that the price of bitcoin (BTC) this year will reach $25 000. Lee identifies three key factors, to convince him that the price of cryptocurrencies will exceed the highs of 2017.
We will remind, on Thursday, bitcoin fell below $8,000 and was trading in the neighborhood of $7 300, having lost most of the growth achieved from mid-April to early may. With this in mind, the fall, bitcoin exchange rate since the beginning of the year decreased by 41%. However, according to Lee, the fall in prices is due to «inherent in the cryptocurrency volatility.» His upbeat mood, he explains three main factors:
The first factor is the cost of production and replication of bitcoin. According to Lee, the bitcoin «trading at cost» because the price of production is almost equal to the trading price. Since the average cost of mining 1 BTC is about $6 000, it is still worth more than the cost of mining.
The main factors that can provoke growth of prices, Whether called institutional investors, who, despite interest in cryptoprocessor yet entered the industry is not entirely due to uncertainty in regulation. He says:
«I think institutional investors are showing great interest, but really they were not included in kriptonyte due to some uncertainty about regulation. However, this kind of investment in crypto currencies as an asset class promises to be a powerful reason for the rise of bitcoin».
Finally, the data collected by Fundstrat, demonstrate a historical trend, according to which investors should keep their bitcoins. That is, if over 10 days, the rate can fall to 25%, the same is possible in the other direction:
«The jump from $8 000 to $25 000 can happen for a few days,» says Lee.
Earlier this month, the company Fundstrat Global Advisors published a study according to which the price of BTC in 2019 will reach $36 000. Analysis of price and cost of bitcoin mining gave specialists a reason to believe that by the end of 2019 bitcoin will move in between $20 000 and $64 000. Currently bitcoin is trading at $7 405.