Fundstrat’s Thomas Lee Believes Bitcoin’s Fair Value is $14,000 BTC/USD, Advises to Put 1% Worth In
Bitcoin (BTC) has been growing in the market in the last few days and it has surpassed $5,000 after several months under that price level. According to Tom Lee, the co-founder of Fundstrat Global said that Bitcoin should be worth $14,000.
Tom Lee Bullish About Bitcoin
Thomas Lee is known for being a Bitcoin bull in the market. This time, during an episode of Squawk Box on CNBC, Thomas Lee said that he does not make any price predictions but that he made a case for long-term investments.
It is worth mentioning that Thomas Lee predicted Bitcoin to reach $25,000 by the end of 2018, which in the end did not happen. He has been severely criticized for the price prediction he made, even when the market was in a clear bear trend.
At CNBC, he commented about the last price movement of Bitcoin:
“Finally, we had a big move on April 1st. It wasn’t clear what caused it, but it was a real evidence that there is a lot of dry powder. The crypto community kept a lot of cash and was waiting for Bitcoin to break $3,000.”
Lee said that Bitcoin could catch up the stock market, that has recently experienced the tenth best first quarter in history. However, there is a low correlation between the cryptocurrency market and the traditional stock market.
Lee has also talked about the U.S. Securities and Exchange Commission (SEC) and the potential approval of the first Bitcoin Exchange-Traded Fund (ETF) in the market. He made a very bullish prediction saying that it will be a very huge positive development if the SEC approves a Bitcoin ETF. Nonetheless, he accepted that there are many challenges that must be faced before the SEC approves an ETF.
At the same time, Lee said that Bitcoin’s fair value is currently $14,000 and. He explained that people could place a 1 percent of its savings into Bitcoin and it would be a small-risk bet for them but with a lot of potentials. At the same time, he said that Bitcoin makes most of its gains on just 10 days during the year, this is why he said that users must hold the asset to catch these gains.
Currently, each Bitcoin can be purchased for $4,869 and it has a market capitalization of $85.84 billion. In the last 24 hours, the digital asset lost 5.11% since it couldn't sustain its price above $5,000.