Tom Lee Adjusts Bitcoin End-Of-Year Price By $3,000

Earlier this year, Tom Lee made an early prediction that cryptocurrency would be seeing $25,000 at 2018.

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However, the Fundstrat research chief made another forecast during the 2018 Asia Blockchain Summit adjusting Bitcoin end-of-year price by $3,000, making it approximately $22,000 by the end of the year.

Lee also declared at the summit that under normal market conditions, Bitcoin should trade at least twice the mining cost. The current BTC mining cost is about $9,100. Bitcoin will reach $22,000 before the end of 2018 with twice that cost plus some additional factors.

In accordance with the price decline, Lee went on to explain that there are three possible reasons as to why it dropped. First, the lack of regulatory clarity puts huge pressure on the market, driving prices to decrease in the process. Ryan Rabaglia of Octagon Strategy agrees to this claim blaming regulatory uncertainty for the enormous decline in Bitcoin price.

In 2014, Bitcoin endured a heavy decline due to the significant market correction the same as what has occurred during this year. It took only 200 days to achieve the same price dip, and Lee assumes that the correction period will be much shorter.

Lee finally identified the issue of Bitcoin futures as having a damaging effect on prices. Nevertheless, there are strong indications that BTC futures trading has an inadequate volume to change the price of the asset significantly. Moreover, Bitcoin futures trading is cash-settled and there is no physical delivery of the underlying asset.

(Image Source: ameinfo)

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