Thomas Lee, the co-founder of Fundstrat Global Advisors, has been one of the biggest Bitcoin (BTC) bulls this year. He has been outspoken in the crypto space. Lee has been bullish on Bitcoin (BTC) and he has released several forecasts about the digital currency. Thomas Lee, also known as Tom Lee, earlier predicted that the value of Bitcoin (BTC) will hit the $25k mark by the end of this year.
However, the best digital currency bull in Wall Street has slashed down his price prediction for Bitcoin by almost 50 percent. Recently, there was a massive selloff in the crypto market. A lot of top digital currencies, including Bitcoin (BTC), lost a significant fraction of their values. Bitcoin (BTC) declined from the $6,500 level below the $5,500 mark.
Thomas Lee Sets $15k as the New End of Year Target for Bitcoin (BTC)
Due to the recent price trend in the market, it was becoming less likely for Bitcoin (BTC) to hit the earlier predicted price. The digital currency is trading below the $6k mark, with barely six weeks to the end of the year. As a result, Lee has lowered his initial prediction for Bitcoin (BTC). The new end of year target set by Lee is $15k. However, this is still far above the current trading level of the digital currency at the time of writing.
Why Thomas Lee Slashed Year-End Target to $15k
The driving force of Lee’s new prediction is the ‘break even’ point of Bitcoin (BTC). This is the level at which the costs of mining matches the trading value. That level was earlier slated for $8k for Bitmain S9 mining machine. Nevertheless, the level is now down to $7k, according to the data science team at Fundstrat.
As a result of that, Thomas Lee predicted that the value of Bitcoin (BTC) would be around 2.2X the breakeven point, which is $7k. This brings the year-end predicted value of Bitcoin (BTC) to $15k. Bitcoin (BTC) is trading far below that level. At the time of writing, Bitcoin (BTC) is trading slightly above the $5,500 mark.
Bitcoin (BTC) Tests a New Yearly Low
The beginning of this week wasn’t really favorable to the crypto market. Most of the digital currencies in the market experienced double-figure losses. Bitcoin (BTC) also plunged deeply and tested a new yearly low. However, Lee is still bullish about the digital currency, and he strongly believes it will recover before the end of this year.
Lee noted that even during the massive selloff in 2013 and 2015, the digital currency never broke below the breakeven point. According to Lee, there is now a renewed wave of pessimism as Bitcoin (BTC) broke below the psychologically important $6k level.
Earlier this week, there was a spar on Twitter regarding Bitcoin Cash (BCH) hard fork. Bitcoin Cash split into two version – bitcoin SV and Bitcoin ABC. Lee has attributed much of the recent price movement to the split of Bitcoin Cash (BCH). Nevertheless, Lee is still bullish on institutional involvement in boosting the value of digital currencies at the end of this year.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is changing hands at $5,533 after a decrease of about 1.3 percent over the past twenty-four hours. The current market cap of the digital currency is $96.17 billion with a trading volume of $4.97 billion over the past twenty-four hours.