Thomas Lee, CEO of the New York-based research company Fundstrat Global Advisors, is in the news after he claimed that the fair price of bitcoin [BTC] should be $14,000. In a recent interview with , Lee spoke about the latest bitcoin rally that breached the $5,000 mark and the factors that propelled it.
In the interview, the Fundstrat CEO said,
“So, if you were to take a combination of active addresses and activity per user, that’s explained over 90% of bitcoin since 2013. The fair value for bitcoin, right now, is $14,000.”
To back his figures, Lee stated that a crypto commodity “generally trades two or two and a half times its breakeven,” during a bullish market phase. During a bear market however, the cryptocurrency trades below the breakeven, he said. Lee further said that bitcoin posts major gains 10 days a year and to capture the gains, “you have to hold or hodl it,” he said.
Lee has always been bullish about bitcoin, previously predicting the leading coin to touch $25,000 by the end of 2018. Talking about the latest market rally catapulted by bitcoin, the research analyst said that the digital coin sustained a rough patch in 2018, but has been steadily climbing since.
He attributed the gradual rise of bitcoin to positive developments taking place in the crypto-system. Old whale wallets have also contributed to the steady accumulation of the cryptocurrency. He further accredited its rise to the highly anticipated Bakkt launch and tools like Fidelity custody. Besides, bitcoin registered activity in places stricken with high inflation and political turmoil, in countries like Venezuela and Turkey, the analyst said.
He concluded by admitting that the SEC’s approval of bitcoin ETFs or other kinds of financial instruments will be a positive and meaningful development for the cryptospace.
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Published at Sat, 06 Apr 2019 01:53:34 +0000
