Fundstrat’s Thomas Lee: Bitcoin Price May Hit $22,000 by the End of 2018
While most of the cryptocurrencies are much below their earlier highs, there are massive predictions coming up for the mainstream cryptocurrencies. As the uncrowned king in the crypto kingdom, bitcoin attracts a lot of attention. One of the latest predictions is that, Bitcoin may rise to as high as $22,000 by the end of 2018.
Thomas Lee, head of research at Fundstrat Global Advisors and managing partner of LLC predicted on July 2 at the 2018 Asia Blockchain Summit that the price of bitcoin should be as twice as the mining costs, in addition to other factors, bitcoin price may hit $22,000 at the end of this year.
Lee gave a speech at the summit, he indicated that there are 3 main factors that causes bitcoin price tumbled this year:
First of all, the uncertainty that is driven around the regulation gives pressure to this market and drives the price further down.
Secondly, the bitcoin price correction also can be one of the factors of the bear market. Since December 2017, bitcoin have not recover to be traded at higher price levels.
However, compares the price of bitcoin in 2014 and in 2018, it took 300 days to drop more than 70% in 2014 while in this year, it only took 200 days, which shows the movement on bitocin this year may be substantially shorter than the correction in 2014.
Finally, Lee has also flagged the possibility that bitcoin futures contracts could be hurting the cryptocurrency’s price.
Nevertheless, both the mining cost and the Bitcoin Misery Index (BMI) show that bitcoin price has hit the bottom. Lee further added, on one hand, miners crying need to boost bitcoin price as the price to break-even cost metric (P/BE) is less than 1. The mining cost is $9,100 at present and the bitcoin price should be stiffened to double the cost and Lee predicts it may hit $2,2000 by the end of this year.
On the other hand, the BMI is less than 30, which promotes investors to buy bitcoin right now to obtaining strong income. Lee concluded that, both of these two index show the price of bitcoin should rebound in the near future.