Tom Lee of Fundstrat Global Advisors believes that the fair value of is around $14,000. The research chief and managing partner at Fundstrat also says that the old whales are back and have begun to buy back massively due to a shift towards positive market sentiments.
The Old Whales Have Returned
Speaking to CNBC on Thursday (April 4, 2019), Lee commented on the recent price surged experienced by the top-ranked , :
had a rough 2018 and for much of 2019, it has been steadily climbing and from what we can gather, it is because there are a lot of positive things taking place. A lot of the old whale wallets are buying .
According to Lee, many of these old whales liquidated their holdings back when price almost topped $20,000 in mid-December 2017. It would seem like there is a shift in market sentiment towards the positive end of the spectrum.
Earlier in the year, Lee published for 2019 which included a trend reversal for the market as a whole. Lee believes that developments like and will act as tailwinds pushing price even higher in 2019.
Also, Lee pointed towards the growing utility of in places of economic unrest around the world. In places like Venezuela and Iran, people are turning towards and other .
As previously reported by Bitcoinist, the U.S. government is reportedly looking to Visa and Mastercard from facilitating payments in Venezuela. Such moves only serve to push more people towards adopting .
bitcoin Fair Value is $14,000
On the subject of ’s price, Lee returned his that the top-ranked is still below its real value. According to the Fundstrat managing partner, ’s fair value is somewhere around $14,000.
Going by Lee’s assertion, is currently at less than 40 percent of its fair market value. For Lee, an accurate valuation for takes into active addresses and activity per user which points to being worth around $14,000.
The Fundstrat research head also based his valuation on the fact that a commodity should trade at 2.5x its breakeven value during a bull market. However, this assumes a breakeven cost of between $5,000 to $6,000.
How High Will bitcoin Go?
Since the , much of the talk has been centered on where will end up at the end of the rally. Despite a , price is hovering around the $5,000 price level, which is serving as support.
Brian Kelly of BKCM that could go as high as the $6,000 to $6,500 price range. For many commentators, the question is what the new psychological resistance price would be now that has broken $4,200.
Do you agree with Lee’s assertion that ’s fair value is around $14,000? Do you think can go as high as that price level in 2019? Share your thoughts with us in the comments below.
Image courtesy of Tradingview.com.
Published at Thu, 04 Apr 2019 20:03:47 +0000