Tom Lee is one of the most respected financial analysts in the United States and is Head of Research at Fundstrat Global Advisors. He is like a movie star on Wall Street and is seen in the American television sections daily. In recent years, he has earned a position of luxury in the media while […]
Tom Lee is one of the most respected financial analysts in the United States and is Head of Research at Fundstrat Global Advisors. He is like a movie star on Wall Street and is seen in the American television sections daily. In recent years, he has earned a position of luxury in the media while dedicating himself to providing the world with fundamental research and market strategies relating to blockchain and cryptocurrency.
He has been known for his professional analysis of the Crypto markets for some time now. People often consider him a kind of Guru as his estimates are almost seen as fine predictions. He is well-respected as an expert who knows the market and is one of the most openly positive analysts when it refers to Bitcoin. For that reason, there are many Crypto enthusiasts who solicit his opinion about the near future of Bitcoin, especially end-of-year values. As a side effect, he has been asked frequently during the days of December what will be the price of Bitcoin? Everyone wants to know if Bitcoin will rise or if it will continue its descent even more as 2018 comes to a close.
Lee does not want to make future estimates at this time. He thinks, however, that Bitcoin’s price does not currently represent its market value. He considers the price of Bitcoin to be drastically lower for its actual present utility today. As such, the digital asset deserves a higher price than its current value, according to Lee.
There are several reasons that Lee shares to support his opinion. The number of Bitcoin Wallets that exist and the number of transactions the Wallets are conducting are two main reasons. Lee in the past has always given much importance to these two factors as bases for value, since these two factors correspond to real world utility. He points out that at this moment there are many more Wallets than there were in December of 2017. As well, there are now thousands more transactions carried out per day. Considering these two factors, Bitcoin has grown enormously. This gives a real value much higher than what is seen in the current market. All this is real use that can be corroborated in the Blockchain. It is not speculative valuation.
According to calculations that Lee has shared in the media, Bitcoin should have a market price between $ 13,800 and $ 14,800. And when people ask him why so many holders are selling their Bitcoins at such low prices, Lee explains that there are obviously psychological reasons acting on it.
People only sell their assets for a price lower than the real price, if there are powerful psychological forces that intervene. This has been the case in the history of Bitcoin many times. In some seasons, even for entire years, it has been the case that people feel depressed in their perception of value and sell at extremely low prices. The factors associated with this type of psychology include the fear of a potential financial collapse, the problems that people have experienced in the ICOs to finance their projects and even the normal market cycle that is expected.
Until recently, Lee dared to forecast a price increase for Bitcoin to take place at the end of this year. Neither he nor anyone could have imagined what would happen after the separation of Bitcoin into two separate Blockchains (Bitcoin and Bitcoin Cash) and the cataclysm that Crypto would suffer this December. Lee had predicted that the end-of-year price would be upwards of $ 25,000. And even after the big November downturn and the present situation, Lee thinks that Bitcoin can correct and could reach up to $ 15,000 during the last days of 2018.
There are only two weeks left until the end of 2018. There are no bullish signals in the Bitcoin market at this time. Nobody would dare to assure that, within the next two weeks, there will be a rise of almost 5 times the price of Bitcoin. However, Lee’s reasoning is studied with great respect in the world of professional investors and his points of view have profound underlying reasons, therefore the possibility that his estimates do come true is not zero. In any case, though, there is concern throughout the world of how the year 2019 will be for Bitcoin and whether the bearish period will last many more months.