Fundstrat’s Tom Lee has been answering questions about Bitcoin for months now, but he suggests that he is growing tired of giving price targets for cryptocurrencies.
In a recent note to clients, the Wall Street crypto bull suggested that Bitcoin’s fair value lies between $13,800 and $14,800.
No Short-term Price Targets
The Fundstrat Global Advisor recently said that the fair price of Bitcoin should be anywhere between $13,800 and $14,800, depending on his fair value model.
Bitcoin is only trading at around $3,300 currently which means that it still has to add another $10,000 to its price to reach Lee’s fair value zone.
“Given we are so close to year-end, we are not providing any updates to near-term price objectives—read this as we are tired of people asking us about target prices.”
Lee has famously cut his Bitcoin price targets consistently. In November, his price target went from $25,000 to $15,000.
One of the key reasons behind the price revision was the mining prices which matched the trading prices. According to Lee’s previous statements, the trading price is fair when it’s around 2.5 times the mining price.
What Will it Take to Get Bitcoin Bullish?
Bitcoin entered a maniacal bullish market last year, fueled in part by speculation.
Lee suggests that the price of Bitcoin will rebound on increased adoption. But, Bitcoin will have to be treated as a real asset class instead of a speculative asset.
Lee’s fair value model has some even more positive predictions chalked out for Bitcoin.
If the number of Bitcoin users equaled 7% of the total number of Visa users, which is 4.5 billion currently, Lee’s model has the fair valuation of Bitcoin at $150,000.
“Hence, the risk/reward is still strong. Given the steep discounts of [bitcoin] to our fair value models, the excessive bearish sentiment about fundamentals does not seem warranted.”
He said that technicals are still an important part of crypto trading and if Bitcoin continues to trade below its 200-day moving average, it will stay in a bear markets.
Bitcoin Bull Tom Lee Is Sick of People Asking About Price Targets was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.