As reported by CNBC, co-founder and strategist at Fundstrat Tom Lee still believes that bitcoin (BTC) will reach 25,000 dollars by the end of this year. Lee identifies three key preconditions for this.
On Wednesday, BTC fell below 8,000 USD and was trading at about the level of 7.500 dollars. But Lee believes that the fall is a typical “manifestation of cryptomonadales” and explains his bullish Outlook three key factors.
The first factor – the production costs of the BTC. On the show “Futures Now” on CNBC Tuesday, said that BTC “trading at cost” because the cost of production, at the moment, almost equal to the price at which it is sold. According to Lee, the production cost of BTC is now about $ 6,000 and it’s still lower than the market price of bitcoin.
Among the main factors that can trigger an increase in prices, Whether called institutional investors who, being interested in crypto-currencies are not completely included in the sector due to uncertainty in regulation.
I think institutional investors are showing great interest, and in fact they have not yet come to cryptocurrency because there is still some uncertainty with how it will all be regulated. But the final definition of bitcoin as an asset class can be a major cause for the growth of bitcoin.
Finally, Lee relies on the historical trend:
Historically, over a 10 day period reflects the price movement on bitcoin during the year. If you look at this period, the price fell by 25 percent. However, in fact this drop is negligible and the rise from 8000 to 25000 can occur at any time.
Earlier this month, Fundstrat Global Advisors, said that according to their study, the price of BTC will rise to 36,000 US dollars in 2019. This study is based on the ratio of costs and the cost of mining BTC. At the moment, BTC is trading at 7.594 of the U.S. dollar.