Cryptocurrency bull Tom Lee says bitcoin’s dismal price of roughly $3,400 is wrong because its actual fair market value is $13,800 to $14,800. The Fundstrat founder said he made the assessment by considering the number of active wallet addresses, usage per account, and supply metrics.
“Fair value is significantly higher than the current price of Bitcoin,” he wrote in a note, as reported by Bloomberg. “In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”
Lee said bitcoin’s price going forward will depend on mainstream acceptance of the cryptocurrency as an asset class and growing consumer adoption. He also insisted that bitcoin’s fair market value would easily rocket to $150,000 if BTC wallets approach just 7 percent of Visa’s 4.5 billion account holders.
While Lee has made countless headlines for his bitcoin price targets, he refused to give one this time, saying he’s getting annoyed with everyone’s pathological obsession with mundane daily price fluctuations. “We are tired of people asking us about target prices,” he quipped.
Despite the bear market, Lee remains ever-bullish about the future of the cryptocurrency industry as we head into 2019, as evidenced by his gleeful holiday tweet with the Rockettes. Bakkt will provide custody and price discovery for bitcoin — which is regulated as a commodity by the CFTC — in a way that will prevent market manipulation and fraud. Similarly, Nasdaq — the world’s second-largest stock exchange — also plans to launch a bitcoin futures product in the first quarter of 2019, as CCN reported. So the race is on.