Tom Lee, of Wall Street, says that the price of Bitcoin will reach $ 22,000 by the end of the year, "may reach $ 25,000"
Tom Lee, of financial market research firm Fundstrat, defended his position that Bitcoin (BTC) could be priced between $ 22,000 and $ 25,000 by the end of the year, in two CNBC interviews on Thursday, July 5
Lee made sure to clarify to reporters emphatically that his latest $ 22,000 price forecast is not a bearish reversal of his previous $ 25,000 forecast.
Lee, a famous Bitcoin bull, is famous for his prediction in January that Bitcoin would reach $ 25,000 by the end of 2018, and then say in March that it would reach a staggering $ 91,000 by 2020
Speaking at CNBC's "Squawk Box" on Thursday morning, Lee at first seemed to have toned down his bullish outlook by saying that "it is not out of the question that [the BTC] could be above $ 20,000 by the end of the year. " Lee based his justification for the new calculation in the historical correlation between the price of Bitcoin and the costs of mining that, according to him, at the end of the year will be around $ 9,000 per coin mined
Reappearing on CNBC on Thursday afternoon, Lee was quick to clarify what he considered an overreaction to his morning comments, saying that:
"I think it's the first time I've heard someone think that something could triple is a bearish comment. I think I may have been a bit wrong [...] what I was trying to illustrate is that [...] applying the historical average of 2.5 times the mining costs would imply a fair value of more than $ 20,000 - approximately $ 22,000 "
Lee added: "We still think that Bitcoin can reach $ 25,000 by the end of the year or something like that."
Last May, Fundstrat published its internal analysis of the relationship between the costs of mining of the BTC and the behavior of prices, affirming at that time that the data had "demonstrated a reliable level of long-term support".
The statistics for May proposed, in particular, a historical average slightly lower than the current figure, using an average of 1.8 times the historical costs of mining to predict that the price of Bitcoin would be around $ 36,000 by the end of 2019
The Bitcoin is currently trading around $ 6,582 at the time of this edition, which is a drop of just over one percent today
