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Bitcoin bull outspoken Tom Lee is one of the biggest cheerleaders in the cryptocurrency and has made a series of clearly unfortunately unlucky price forecasts.
With the price of Bitcoin hit the new lows a year after breaking critical support at $ 6,000, Lee is now saying that Bitcoin is currently extremely undervalued, up to $ 10,000. Furthermore, it is unusually in decline to make future predictions on the price of cryptocurrency.
Tom Lee kept in mind the predictions of the future price
Speaking with Bloomberg, Fundstrat Global Advisors' research leader, Thomas Lee, refused to offer a modified year-end forecast for Bitcoin, saying he was "tired of those asking us [Fundstrat] on target prices. "Lee made some bold predictions in the past, making a request in May claiming that the cryptocurrency would reach $ 25,000 by the end of the year.
Related reading | The future is brighter than ever for Crypto, says Roger Ver
Not only did Lee's noble prediction come true, but he missed the target of over 85% unless Bitcoin suddenly recovers. Given the current market sentiment, achieving Lee's goal at the end of the year would seem to be impossible, which could explain Lee's reluctance to make another prediction. Lee later lowered that prediction to $ 15,000 more modest, but even that goal is very far.
Without making another specific prediction, Lee pointed out that the price of Bitcoin is valued at $ 150,000 for BTC Self the amount of portfolio addresses can reach 315 million, which would be 7% compared to the 4.5 billion VISA accounts.
Tom Lee: Bitcoin Fair Value is between $ 13,800 and $ 14,800
According to Lee, the fair value of Bitcoin is between $ 13,800 and $ 14,800 – making the major cryptocurrency undervalued by over $ 10,000. Lee based its fair value on the number of active portfolio addresses, the amount of transactions on each account and the overall offer.
"Fair value is significantly higher than the current price of Bitcoin," explained Lee.
Bitcoin recently passed a price plan repeatedly tested at $ 6,000 by sending the market into a state of panic, and the price has plummeted another 40% to a minimum of a year of $ 3,250. The bitcoin is currently trading at around $ 3,400, making the original cryptocurrency undervalued by $ 10,400 on the low end and $ 11,400 on the high end, according to Lee's assessment.
Related reading | Tom Lee: Bitcoin is the best home in a difficult neighborhood
As for why Bitcoin is so underrated, Lee states that it's a combination of factors. This includes the growing concerns surrounding a potential global economic collapse and the corresponding de-risking by investors, the initial offering securities of coins that sell assets to finance operations and the normal market cycle after the breakdown of a parabolic progress.
Lee neglected to mention another factor that the finger of the cryptocurrency community points to as the reason for the current downward spiral: the ongoing war between two opposing fields of Bitcoin Cash. Regardless of the exact reasoning, enough factors have been accumulated to send the market into a state of fear and, as a result, the entire cryptocurrency market has been bled – with no end in sight.
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