Thomas Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, has significantly improved his price forecast for bitcoin. Now analyst from Wall Street is confident that by mid-2018, the price of BTC will grow to $ 11.5 thousand, although in August he spoke only about the mark of $ 6000. This is reported by CNBC.
So, a few weeks ago Lee's forecast was relatively neutral - then bitcoin stopped around $ 7400. The analyst noted that the crypto currency hold "too many weak hands", because of which there was a probability of a sharp drop "from the slightest turbulence". As a result, he designated $ 5,500 as the level at which you should buy bitcoin. Recently, the BTC really dropped to $ 5,600, which, according to Lee, cleared the market of uncertain players.
A few weeks ago, we turned short-term neutral on bitcoin as the price level then (~$7400) exceeded our estimate of fair value," Lee wrote in the report. "Last week, Bitcoin fell to $5,600 and since then rebounded. In our view, this move to $5,600 cleaned up weak hands and we no longer feel caution is warranted. … We recommend steady buying of Bitcoin at these levels.
Managing Partner and Head of Research, Fundstrat Global Advisors
As a result, the financier increased his forecast for the middle of 2018 from $ 6000 to $ 11.5 thousand - almost 40% higher than the current BTC rate. In addition, Lee is optimistic about the future appearance of bitcoin futures. Like many others, Fundstrat analyst is confident that transactions with derivative instruments based on crypto currency will strengthen confidence in bitcoin and contribute to the growth of the number of potential users.