Tom Lee, an analyst at Fundstrat Global Advisors, lowered his forecast for the Bitcoin exchange rate by $ 10,000. Now he is predicting a $ 15,000 exchange rate for the main cryptocurrency by the end of 2018.
According to CNBC , Lee believes that when predicting the rate of Bitcoin should be based on the “point of self-sufficiency” – the level at which the cost of mining Bitcoin corresponds to its trading rate. According to Fundstrat analysts, Bitmain’s S9 Antminer for ASIC miners dropped this level to $ 7,000, while it was previously estimated at $ 8,000.
Lee's forecast is that the Bitcoin rate should be 2.2 times higher than the break-even point, which is 7,000 dollars, which ultimately gives a little more than 15,000 dollars. This week was one of the most dramatic in 2018 for Bitcoin and other cryptocurrencies .
On Thursday, his rate fell to a mark at which he was trading about a year ago – just below $ 5,400 – and since then he has played quite a bit. At the time of this writing, it is at the level of $ 5,540 – almost three times lower than the new Lee forecast.
Lee expects the rise, relying on how the course of Bitcoin behaved during the recession in 2014, when he refused to fall below the break-even point.
“Bitcoin fell below the psychological mark of $ 6,000, which caused a new wave of pessimism. But we believe that a large part of this recession falls on the pessimistic mood of investors, and not on fundamental factors, ” he added.
Lee also noted that “in order to involve institutional investors, it is necessary to create a broader infrastructure,” to which the initiatives Fidelity and the launch of Bakkt can be attributed. Earlier, Lee reported that he was pleasantly surprised by the stability of Bitcoin amid falling global indices.
