Thomas Lee’s Failed Bitcoin Predictions: Is It The Crypto Market Or The Expert Who Is Wrong?
Failed Bitcoin Predictions Of Thomas Lee?
Thomas Lee, well-known bitcoin bull and head of research at Fundstrat Global Advisors, predicted an ending year worth of $25,000 in May of this year. It’s already halfway through December and bitcoin is trading at less than $3,400 per- and yet he refuses to back down.
While boasting an extensive line of experience, working as the department head of research for the international advisory company, Fundstrat. Thomas Lee has, in the past, been quite bullish about the prospect of a broader Bitcoin rally; believing that BTC would rise up to a total value of $25,00 by the end of 2018.
While the year has continually, and chronically proven to work against Mr. Lee, he remains resolute that the darkest time is before the dawn before the dawn for the crypto – even as it slides below the $3,400 mark.
According to Lee, bitcoin’s fair value estimates between $13,800 and $14,800, when factoring in supply, usage, and amount of active wallet addresses.
“Fair value is significantly higher than the current price of Bitcoin. In fact, working backward, to solve for the current price of Bitcoin, this implies crypto wallet should tall to the 17 million from 50 million currency,” he said.
His explanation for this widely varying gap range from last year’s rally of value, to the “meltdown” of the macroeconomic climate and the initial coin offering sales from the treasury.
In his model (one built based on Metcalfe’s law), Bitcoin could raise in value to $150,000 if its wallets reached even 7% of Visa’s 4.5 billion account holders, but this wholly depends on Bitcoin’s acceptance as an asset (instead of an untrustworthy money) and enough user adoption.
Lee has declined to update his end of year forecast, stating, “We are tired of people asking us about target prices.” They say it’s hard to keep down a bull.