Tom Lee Bails on His $25,000 Bitcoin (BTC) Price Target for 2018

Tom Lee (Scott Mlyn / CNBC)
Voyager
Voyager

Tom Lee, the co-founder of market strategy firm Fundstrat Global and serial CNBC crypto contributor, has cut his end of year price prediction for Bitcoin (BTC) from $25,000 to $15,000.

In a note to investors on Friday, Lee provided guidance on what Fundstrat still sees as Bitcoin’s fair value based on the current energy and device costs associated with mining a single coin.

Lee notes that the current break-even price is roughly $7,000, which is down from the previous $8,000 due to the introduction of Bitmain’s¬†S9 miners.

However, despite the fundamentals and mining economics pointing to a higher valuation, Lee concedes that Bitcoin is suffering from a sharp drop in investor sentiment.

“While bitcoin broke below that psychologically important $6,000, this has lead to a renewed wave of pessimism,” said Lee, JPMorgan’s former chief equity strategist. “But we believe the negative swing in sentiment is much worse than the fundamental implications.”

Investors would be wise to conduct their own due diligence¬†rather than listening to an expert, as Lee’s predictions have proven to be incorrect on more than one occasion. While an analysis can be very sound, the immaturity, thin volume and volatility of the crypto market make it difficult for anyone to properly predict future price movements.

BTC is currently trading for $5,640, giving the largest cryptocurrency a $98.1 billion market cap and a 55.5% weight in the AltDex 100 Cryptocurrency Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.

More: Wall Street’s crypto bull Tom Lee slashes year-end bitcoin price forecast nearly in half
Similar: Fundstrat: Now Is Not the Time to Increase Bitcoin (BTC) Exposure

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

 
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