Tom Lee: “the fair price of Bitcoin is significantly higher than the current price.”
Home News Tom Lee: “the fair price of Bitcoin is significantly higher than the current price.”
Marcus Misiak –
Tom Lee, one of the most well-known Bitcoin bulls and senior managers of the Fund joined Global Advisors stated in an Interview with Bloomberg that a “fair price of Bitcoin is significantly higher than the current price”.
The Bitcoin price has fallen in the last few days of a significant Low of about 3,300 USD, a value that has not seen the BTC since the Bull-Run in December 2017, the price to almost 20,000 USD exploded. Many market analysts have recently predicted a “floor” at $ 2,500, while some of the crypto-opponent currently see the final demise of Bitcoin, where the currency has a price movement that would indicate that the bubble has burst. Seemingly unfazed by the current Situation of the Bitcoin bull Tom Lee claims, however, that currently is an irrational market in case the price of BTC is responsible.
In a communication to investors, which was published yesterday, gave Lee a hopeful message to the investors, and suggests a fair value of Bitcoin in relation to the number of active Bitcoin Wallet addresses, the use per account and other factors such as the deflationary supply of the currency, between of 13,800 and 14,800 USD. Currently, Bitcoin languishes at about 3,300 USD, with a further decline due to the market sentiment seems likely. Lee said:
The market value is significantly above the current price of Bitcoin. In reverse, this means the current price of Bitcoin, the number of BTC Wallets would have to fall from 50 million to 17 million, in order to justify the low price.
While some of Lee to blame for his forecasts, and in particular to his often expressed, bullish statement in may that Bitcoin would climb until the end of 2018 to $ 25,000, he remains confident that the Outlook for the industry and its own assessment. For the non-fulfilment of his prediction, Lee makes no incorrect analysis on his part, but to an irrational market.
As the price of Bitcoin shot up late last year, said Lee, is that the rapid rise in the macro is economic “gewsen together due to breakage”, and the Treasury sold during the tokenization process. By the end of 2017 and beginning of 2018 is very popular Initial Coin Offerings (ICOs) since then due to Financing, poor business models and an increase in the number of fraud cases decreased.
Due to this, it is currently more important than ever that the adaptation of crypto currencies and Bitcoin continues to pick up speed, and BTC is a universal, ubiquitous currency. Lee explained that if the Bitcoin Wallet holders would increase to about 7 percent of the 4.5 billion Visa account holders, the market value of the coin could rise to up to $ 150,000.