During his recent appearance on the “Odds Lots” podcast, Fundstrat’s Tom Lee explained the rationale behind his Bitcoin predictions.
During his recent appearance on the “Odds Lots” podcast, Fundstrat’s Tom Lee explained the rationale behind his Bitcoin predictions.
“Bitcoin is different from other asset classes because it has a cooperative value. You know, people who contribute to the network benefit from it, and that’s different from any other asset class,” Lee explained.
Lee recalled that his company first wrote about Bitcoin in 2017 and that Bitcoin cost around $1,000 at the time. Back then, Fundstrat published a white paper, which explained that there are two main variables that determine the price of Bitcoin: the number of active wallets and activity per wallet.
“At that time, we made a simple projection. We said that in five years, by 2022, if the number of wallets increased by 70% and activity per wallet increased by 40%, Bitcoin would be $25,000 by 2022.” Lee said.
Tomiwabold OlajideThe permabull called Bitcoin an “incredible technology” as it is so secure that it has never been hacked in 14 years of its existence. “Not a single entry on the Bitcoin ledger is fraudulent,” he added.
That said, more than 80% of Bitcoin price movements are still explained by per-wallet activity.
Alex DovbnyaAs reported by U.TodayFidelity’s Jurian Timmer has suggested that the disappointing growth of the Bitcoin network could be the reason why the cryptocurrency has failed to post record highs in recent months.
On Monday, the cryptocurrency king fell below the $60,000 level for the first time in over a month, touching an intraday low of $59,863, according to data from CoinGecko.
Recently, Lee bent at its previously stated price target of $150,000 in June.
