Thomas Lee Remains Bullish Despite Bitcoin Price Sinking to New Lows
Thomas Lee, head of research at Fundstrat Global Advisors, still believes in Bitcoin’s strong upside potential, even though the price of the flagship cryptocurrency continues to plummet, reaching new yearly low on Friday, December 14.
Earlier this year, Thomas Lee predicted a rally to $25,000 by the end of December; however, things are not going exactly his way with Bitcoin today collapsing below $3,250. This, according to data provided by CoinMarketCap, is the new yearly low, while at Bitstamp and a number of other exchanges prices fell down to $3,180.
Despite these developments, Thomas Lee is adamant that Bitcoin’s fair value, given the number of active wallet addresses, usage per account and factors influencing supply, is between $13,800 and $14,800. That’s what he wrote in a note to investors on Thursday, Bloomberg reported.
“Fair value is significantly higher than the current price of Bitcoin,” he said. “In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”
According to Lee, user adoption and Bitcoin’s acceptance as an asset class are the key factors that will drive it higher beyond 2018. If Bitcoin wallets approach just 7 percent of Visa’s 4.5 billion account holders, fair value would be $150,000 per Bitcoin according to his model, he said.
“We are tired of people asking us about target prices,” he added, declining to update his year-end forecast.
At press time, Bitcoin was changing hands at around $3,247 on average ($3,191 on Bitstamp).
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