Tom Lee is still confident in his prediction that Bitcoin will be $ 25,000. His argument for all this certainty can be summed up in three factors.
Tom Lee – Founder and analyst named Fundstreet – this time stands by his previous prediction and emphasizes it. He had previously predicted that the price of bitcoin would reach $ 25,000. According to a CNBC report on Wednesday; Tom Lee has presented three key factors for his strong belief. He believes that Bitcoin will surpass its price record in 2017 and reach $ 25,000.
On Wednesday, the price of Bitcoin fell below $ 8,000 and reached $ 7,500. Despite yesterday’s price reduction, Bitcoin has dropped by more than 41% in 2018 so far.
Also read: Tom Lee Predict: Bitcoin Price Will Reach $ 91,000 by March 2020!
According to Lee; The reason for this decline is nothing but “normal fluctuations in the crypto market”!
Here are Lee’s top three reasons for predicting bitcoin will be $ 25,000:
The first reason
The first factor is bitcoin mining and its costs.
On Tuesday, Lee said while appearing on CNBC’s “Futures Now,” he said:
Bitcoin was traded at a reasonable price because the cost of extracting it is somewhat equal to the cost of buying and selling it.
According to Lee, yesterday the cost of producing bitcoin was about $ 6,000, and yet it is still worth more than its extraction costs.
The second reason
Among his reasons, Lee mentioned institutions that have more or less entered the digital currency investment due to legal concerns, not entirely:
In my opinion, the institutions that have invested in digital currency have made huge profits, but they have not yet fully entered this field because they are still in the throes of legal concerns and are not yet aware of the regulations. But injecting this amount of capital into the digital currency market will definitely be a strong reason for the growth of bitcoin prices.
The third reason
Finally, the data collected by the research firm Fundstrat shows a historical trend. Based on this information, Lee advised investors to keep their bitcoins.
The history of digital currencies has shown that a ten-day period can span the entire one-year performance of Bitcoin from here to there. If we remove those ten days from the whole year, Bitcoin will see a 25% drop in the year. So just as the $ 8,000 bitcoin is painful and upsetting, it is likely to rise from $ 8,000 to $ 25,000 soon!
Earlier this month, Global FundStrat Advisors made public their findings. By examining the growth of bitcoin over time, and based on averages, they predict that the price of bitcoin will reach $ 36,000 in 2019.
Analysts examine the relationship between the cost of bitcoin mining and its trading rate and predict that the price of this digital currency will reach between $ 20,000 and $ 64,000 by the end of 2019.
At the time of writing, Bitcoin is trading at approximately $ 7,600 and has seen a 4% decline over the past 24 hours.