• Thu, 12 Dec 2019, 03:59 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Tom Lee cuts bitcoin’s year-end target price to $15,000

Mon, 19 Nov 2018, 07:23 am UTC

Tom Lee, co-founder of Fundstrat Global Advisors, has lowered his year-end target for bitcoin price to $15,000 from $25,000, CNBC reported.

Bitcoin price, which hit this year’s low at $5,188 on November 15 (Coinbase), is currently trading at $5,372 at the time of writing. While some crypto experts believe that current market prices represent the actual value of the assets, Lee is placing his bets on recovery.

According to Fundstrat's data science team, bitcoin’s break-even point – the level at which mining costs equal the trading price – is down to $7,000 from a previous estimate of $8,000 for the S9 mining machine by Bitmain. Lee expects bitcoin’s fair value to be roughly 2.2 times the new $7,000 break-even price, CNBC stated.

In a note to clients last Friday, Lee pointed out that even in the depths of a previous bitcoin bear market between 2013 and 2015, it "never sustained a move below breakeven."

"While bitcoin broke below that psychologically important $6,000, this has lead to a renewed wave of pessimism," said Lee. "But we believe the negative swing in sentiment is much worse than the fundamental implications."

Lee added that much of the weakness seen in bitcoin price recently was driven by "crypto-specific" events including the bitcoin cash hard fork. He expects more institutional involvement in the crypto space will boost prices by the end of this year and believes that the launch of ICE, Starbucks and Microsoft-backed Bakkt and Fidelity entering the market is "part of a broader creation of infrastructure necessary for institutional involvement.”

In an interview with The Street in June, billionaire crypto investor Tim Draper said that he expects “Bitcoin trade around the $250,000 mark in 2022.” Draper reaffirmed this bitcoin price target during a panel discussion at the Web Summit summit conference held earlier this month, CoinTelegraph reported.

Eric Piscini, former Global Head of Blockchain at Deloitte and current CEO of Citizens Reserve told TokenPost that he expects “the total market cap will triple from the price it is today.”

Oliver Carding, the CEO of cryptocurrency new site CoinJournal and blockchain toy startup Crypto Kaiju, refrained from giving any price target saying:

“In terms of price, I’ve been in the [crypto] space for over 5 years and couldn’t call it. I would hope that as use cases and capacity increases so too does adoption.”

That said, Carding emphasized that cryptocurrency market cap doesn’t really serve as a good indicator for the value of cryptocurrencies overall. He explained:

“There are still so many remnants of 2017’s ICO hype and as such there are dozens of assets listed that have no long-term value or hold purely speculative value for products and services that’ll never ship. I feel that usage and development are much better for determining progress with wallet sign-ups, the number of daily transactions and Github commits all being valuable indicators when determining value. Ethereum, for example, is the fifth fastest growing open source project on Github and demonstrates the hard work being applied to growing and improving the network.

Echoing similar views, Natalia Karayaneva, CEO of Propy, explained that while in the traditional world, one gauges a company’s value by its market valuation, it is not the same in the crypto space.

“In reality, the market cap is highly dependent on token creators and not so much the market or the product traction itself - similar to Telegram or other social media channels,” Karayaneva added. “These vanity metrics do not guarantee any success and the only people interested in them are the so-called HODLers. The HODL mentality is poisonous for the blockchain space. It’s time to BUIDL. KPIs for are specific for each project, but if I have to choose just one - they would be active (actual) users.”

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $7,210.85 (-0.83%)
  • Ethereum (ETH) $143.14 (-2.18%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $206.53 (-0.69%)
  • Litecoin (LTC) $43.84 (-1.39%)
  • Bitcoin (BTC) $7,210.85 (-0.83%)
Dec 12, 2019 (Thursday)
03:35
Russian power grid company to use blockchain technology to solve massive energy debt issue
03:14
Elliptic launches a risk-assessment tool for banks to identify trustworthy crypto exchanges
Dec 11, 2019 (Wednesday)
12:54
Wu Jihan once again takes over the helm at Bitmain as CEO
12:36
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:35
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
11:52
China securities watchdog appoints former head of PBoC Digital Currency Institute: Report
11:07
Crypto Technicals: ETH/USD consolidates below 5-DMA, scope for further weakness
10:52
Nike secures patent for blockchain-enabled “CryptoKicks”
09:44
BitPay rolls out stablecoin payments for merchants and consumers
08:52
Ripple improves Xpring platform to boost growth of XRP developer community
07:42
Crypto Technicals: BTG/USD extends weakness below 5-DMA, momentum strongly bearish
07:19
Blockchain technology poses money laundering, terrorist financing risks, says annual FINMA report
07:15
JPMorgan’s blockchain-based Interbank Information Network attracts interest from over 80 Japanese financial firms
06:57
Fiat Chrysler Automobiles joins IBM responsible mineral sourcing blockchain
06:30
Crypto Technicals: XRP/USD resumes weakness after rejection at 21-EMA, eyes trendline support at 0.1980
06:01
FinCEN sees spike in crypto-related suspicious activity reports after May advisory
05:14
Bank of Lithuania publishes paper on CBDC to nurture discussions around the new innovation
04:59
WeBank becomes technical infrastructure provider for China’s Blockchain Service Network
04:58
Crypto Technicals: BTC/USD slips below 61.8% Fib, more weakness on charts
04:03
Saga stablecoin launches on Liquid platform; Will slowly gain independence once client trust is established
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft