Bitcoin bulls don't ever give up, Tom Lee still believes in strong upside potential
|- Fundstrat's Tom Lee says the fair value of Bitcoin is much higher.
- BTC/USD stays close to recent lows.
Tom Lee, head of research at Fundstrat Global Advisors, is not discouraged by declining bitcoin prices. He sticks to his optimistic expectations.
To prove his point, he explained, that such factors as the number of active wallet addresses, usage per account and supply considerations point at a price between $13,800 and $14,800.
“Fair value is significantly higher than the current price of Bitcoin,” he wrote. “In fact, working backward, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently”, he said.
He believes that Bitcoin mass adoption will be driven by a higher level of acceptance as an asset class. While Lee declined to give a target price for the year-end, he said that Bitcoin's fair value would be $150,000 if the number of active wallets approached to 7% of Visa’s 4.5 billion account holders.
Meanwhile, BTC/USD is changing hands at $3,267, mostly unchanged since the beginning of Friday. The coin refreshed 2018 low at $3,194 during early Asian hours. While the price managed to recover above $3,200 handle, the upside momentum is weak, which implies that the downside may be resumed later during the day.
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