Tom Lee is back again with his tall claims about bitcoin. Tom Lee, Fundstrat Global Advisors Managing Partner and Head of Research, and his team believe that Bitcoin will reach a value of $91,000 by March 2020.
Bitcoin due to latest regulatory scrutiny and Google’s crypto advertisement ban resulted in a nosedive in value and reached $7400, which is considered a “major low” in bitcoin. Lee’s framework for valuing takes into account money supply growth, the ratio the ratio of alternative currencies such as gold to that money supply and bitcoin’s share of those alternatives. The strategist also expects increased interest from institutional investors, and user account growth and usage to spur bitcoin’s gains.
Lee and Fundstrat used an average of the percentage gained at price after each dip to arrive at the prediction.
The first drop was noted from June to November in 2011 and price drop hit a low of 93% in a bear market. In 2011 to 2013 a decline of 70% observed in a bull market which was followed a 86% drop after the events of 2013. The current slump occurred where the price dropped by 70%. Fundstrat team believes that the market from 2015 to 2020 to be a bull market and the price is expected to rise in the near future.
Lee expects patience from the investors when the sentiments in the market are currently awful. Lee wants the traders to look at the big picture and expects patience and perspective from the crypto traders.
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Source: Coin Telegraph