Bitcoin News: Tom Lee, the Co-founder of Fundstrat Global Advisors and a vocal crypto bull, has lowered his end of year Bitcoin price prediction to $15,000. Though it is marginally lower than his initial prediction of $25,000, it is still marginally optimistic looking at the current state of the market.
Lee in conversation with CNBC forecasted a price point for Bitcoin, that is well above the current trading value of the token. According to him, the key issue was Bitcoin’s ‘break-even point’, when mining costs match the trading price. For Bitmain’s flagship S9 Antminer the level is down to $7,000 from an earlier estimate of $8,000 according to analysts.
As per Lee’s prediction, Bitcoin should be at around 2.2 times the new break-even price of $7,000 which places it at just over $15,000. This prediction on the foot of the worst week for Bitcoin and cryptocurrencies in 2018. BTC observed a new yearly low of just below $5,400 on Thursday and wasn’t able to rebound much. Notably, this is approximately three times lower than Lee’s year-end level.
Lee obviously remains confident that the token will make a full recovery, he cites the previous long bear markets in 2014 when BTC never sustained a move below break-even. He stated:
“While bitcoin broke below that psychologically important $6,000, this has led to a renewed wave of pessimism. But we believe the negative swing in sentiment is much worse than the fundamental implications.”
Experts have come up with various reason why the foremost token isn’t able to gear up and most blame the hard fork war of Bitcoin Cash. The division of the BCH community, the verbal mudslinging and hash power battles are just embroidering the weaknesses of the ecosystem.
Lee believes that staleness will be temporary and that institutional investors are becoming increasingly inclined towards this space as a “part of a broader creation of infrastructure necessary for institutional involvement,” is being bridged by the involvement of Fidelity and the launch of Bakkt.
Notably, cryptocurrencies have generally outperformed during the latter half of the year, but this year the market is at its lowest levels for over 12 months.