As a crypto investor with some experience under my belt, I find Tom Lee’s perspective on Bitcoin intriguing and insightful. His emphasis on the cooperative value of Bitcoin, the unique factor that sets it apart from other asset classes, resonates with me. I remember when Fundstrat first published their white paper on Bitcoin back in 2017, around the time when it was priced at $1,000. Their analysis, which focused on the number of active wallets and activity per wallet, piqued my interest.
In a recent interview on the “Odds Lots” podcast, Tom Lee of Fundstrat shared the reasoning behind his Bitcoin forecasts.
Bitcoin sets itself apart from other financial assets due to its collaborative nature. Those who participate in the network by providing computational power and validating transactions reap rewards, a distinction not found in traditional asset classes. (Lee’s explanation paraphrased)
In 2017, when Bitcoin was valued around $1,000, Lee looked back and remembered that his company, Fundstrat, had released a white paper. This document outlined the two primary factors influencing Bitcoin’s price: the number of active Bitcoin wallets and the level of activity in each wallet.
As a researcher looking back at our past analysis, I’d put it this way: “Five years ago, we made a straightforward estimation. We assumed that the number of Bitcoin wallets would increase by 70% and the average activity per wallet would rise by 40%. Based on these projections, we predicted that the price of Bitcoin would reach $25,000 by the end of 2022.”
A bullish investor with unwavering faith in Bitcoin referred to it as an “extraordinarily secure technology” due to its unbreached status over the past 14 years. He further emphasized that there has been no instance of fraudulent activity recorded on Bitcoin’s transaction history.
That said, over 80% of Bitcoin price moves are still explained by activity per wallet.
According to U.Today’s report, Fidelity’s Jurian Timmer posits that Bitcoin’s subpar network expansion might be the cause for its lacking new price peaks in the past few months.
On Monday, Bitcoin, referred to as the crypto king, dropped below the $60,000 mark for the first time in over a month, reaching a low of $59,863 during the day, based on information from CoinGecko.
Recently, Lee doubled down on his previously stated price target of $150,000 back in June.
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2024-06-24 21:44