Tom Lee, co-founder of Fundsrat Global Advisors, the only major Wall Street strategist covering bitcoin, sees a silver lining in bitcoin’s current fallout and has raised his bitcoin price target from $11,500 to $20,000 for mid-2018,.
Lee said bitcoin’s intrinsic value has increased over the last month due to the growth of new bitcoin wallets, and that Fundsrat is buying bitcoin as the price has dropped, CNBC reports.
A Forecast 37% Price Jump
The revised target represents a 37% jump from the $14,600 price on Coinbase on Friday afternoon. Bitcoin fell 47% to $10,400 in the morning from its record $19,800 last Sunday. Bitcoin price is back above $15,000 today amid an ongoing recovery.
Fundstrat projects unique IP bitcoin wallet addresses will increase 50% by mid-2018 while user activity will rise 10% from present levels, Lee said. Lee has raised his mid-2018 projection twice since late November, when he raised it from $6,000 to $11,500. He initiated the $6,000 projection in August.
Bitcoin has surged nearly 1,900% this year, even with Friday’s steep decline.
Also read: Bitcoin a good bet for millennials, says bullish strategist Tom Lee
Speculative Activity Noted
Lee said there is a parabolic/speculative price activity taking place with bitcoin that he considers unhealthy, but he is not surprised bitcoin is currently selling off. The surge in the past few weeks was partly responsible for the increase in bitcoin wallets, as was speculation.
Lee said $11,000 is becoming a support price for bitcoin. The next downward support levels are $10,131, $7,918 and approximately $7,000.
Lee maintained his $25,000 bitcoin price target for 2022 based on the Bitcoin Investment Trust (GBTC) over-the-counter price moving from $1,300 to $2,200. GBTC’s price has jumped more than 1,500% to $1,900 this year. Lee, who was J.P. Morgan Chase’s chief equity strategist from 2007 to 2014 before helping to launch Fundstrat, became the first widely followed market strategist to focus on bitcoin’s price back in July. He is now Fundstrat’s managing partner and research head.
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