Not long ago, investment research firm Fundstrat predicted that by the end of 2019, the price of bitcoin would soar to $36,000, and possibly reach as high as $64,000 shortly afterward.
Despite the digital currency’s recent price drop, Fundstrat CEO, Tom Lee, predicted that it is highly likely for the price of the crypto powerhouse to soar to $25,000 in the coming future. In an email sent to CNBC, Tom Lee talked about how the recent prices are a direct result of ‘typical crypto volatility’, and why he believes bitcoin’s value is bound to increase.
To kick things off, Lee mentioned that the $8,000 value meant that bitcoin was ‘trading at cost’, as the price of production was of roughly the same amount. Following the recent price dip, the production cost was estimated at $6,000, thus putting the currency’s worth above its cost.
One of the other reasons predicted for bitcoin’s future price push has been attributed to strategic institutional investment. According to the Fundstrat CEO, the reason why institutional capital has not yet headed to the crypto market is because of regulatory uncertainty. However, in the future, it is possible for crypto to be allocated to a unique asset class, therefore encouraging institutional investments.
Last but not least, Lee’s beliefs are also based on the data compiled by Fundstrat. According to him, there is a historical trend that encourages investors to hold onto their bitcoin.
He concluded by mentioning:
“So as miserable as it feels holding bitcoin at $8,000, the move from $8,000 to $25,000 will happen in a handful of days.”
Based on everything that has been outlined so far, what are your thoughts on the short-term future of bitcoin? Let us know in the comment section.