Bitcoin bull Tom Lee stated in two of his interviews with CNBC that the Bitcoin (BTC) price would fluctuate between $22K to $25K by the year’s end.
The Fundstrat co-founder made a prediction earlier this year, that Bitcoin would rise to $25K by the end of 2018, later saying in March that it would reach a staggering $91,000 by 2020. However, he elucidated that his recent price prediction of $22K would not be a backdown from his previous forecast:
“We still think bitcoin can reach $25,000 by the end of the year or something like that.”
According to Lee, the mining costs and Bitcoin’s price are interlinked and the token price should be double the mining cost incurred. Owing to the predicted costs which would be nearly $9K per coin mined, Lee announces the BTC price prediction of $22K before the end of 2018.
The dramatic response came after Lee’s Thursday morning talk on CNBC’s “Squawk Box” segment. He was reported saying, “Bitcoin has historically traded at 2.5 times its mining costs.” Furthermore, “The reason Bitcoin looks really good here is the cost of mining around $7,000 fully loaded. And the difficulty is rising. So by the end of the year, it’s going to be $9,000,”
Later in the interview on Thursday afternoon, he says:
“I do think it’s the first time I’ve ever heard someone thinking something could triple is a bearish comment. I think I may have misspoken a little bit […] what I was trying to illustrate was that […] applying the historical average of 2 and a half times mining costs would imply fair value over $20,000 – roughly $22,000.”
Laying particular emphasis on his point, he wanted the investors not to cavil at a few thousand dollars, as any return overreaching $20K would be 200% higher than the current level, which remains around $6600 in the early Friday trading.
All in all, the Wall Street strategist is certain that the world’s largest cryptocurrency would be at a price higher than $20K per unit, by the year’s end.