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Unrepentant cryptocurrency bull Tom Lee predicts Bitcoin will reach $25,000 in 2018 and $125,000 by 2022.
Aggressive Predictions For Bitcoin’s Future
Tom Lee was the first major Wall Street analyst to cover Bitcoin and has remained bullish about the cryptocurrency market since. In his latest report, Fundstrat Global advisor’s head of research called for some high numbers in the coming years.
Having analyzed 22 bitcoin depreciations of more than 20% he found that recoveries take 1.7 times the duration of a decline in a bull market, to which he added that this is still a bull market. Given that trend, Bitcoin would make a complete recovery by July.
“We expect bitcoin’s major low to be $9,000, and we would be aggressive buyers around that level. We view this $9,000 as the biggest buying opportunity in 2018.”
Lee said in his report on Thursday
Lee’s formula for valuing bitcoin measures money supply growth, the ratio of alternative currencies like gold to the money supply and a digital currencies share of those alternatives. He also expects to see substantial interest in crypto commodities from institutional investors in the coming year.
Lee said in his report that the $10,000 mark, which Bitcoin recovered this week, is an important psychological key for investors watching the recovery. Noting that the bottoms of the recent decline have all been V-shaped he went on to predict some big numbers.
Lee said on CNBC’s Fast Money that he expected bitcoin to go to $25,000 by July of this year and then double that by years end. $25,000 was a mark he previously set a four-year goal, which he now has reassessed to $125,000.
These may sound like grandiose predictions but coming from the man who called the new year drop of roughly 50% a buying opportunity not completely unexpected.
“We can see a case for Bitcoin’s resilience here given the sharpness of the recent decline.”
Blue Chips Will All See Tremendous Growth
He moved on from bitcoin in his report to make some equally impressive predictions concerning other ‘Blue Chip’ cryptocurrencies.
He expects Ethereum to reach $1,900 by years end, up 90% from present value.
Lee also predicts the Chinese developed NEO currency will gain 50 percent from Thursday’s value to hit $225 by 2019.
As stunning as Lee’s predictions for 2018 are they actually pale in comparison to the percentage gains for each of these coins in 2017. When Bitcoin hit 19,800 in it’s December peak it was up 2,000% from its previous high value. Ethereum had 9,600% and ripple or XRP blew everyone away by going over 35,500 percent by the end of 2017.