A lot of analysis is being made on Bitcoin’s price surge, and it is worthy to note that the major focus is not on what could happen but what is actually happening. Among these is one given by Tom Lee, Fundstrat Global Advisors founder who said Bitcoin’s fair value is $14,000.
Tom Lee is Questioned About Bitcoin’s Recent Spike in Price
While in an interview with CNBC on April 4, Tom Lee was asked a number of questions revolving around the latest hike in Bitcoin’s price and what should be expected in 2019. Lee responded that the recent surge was triggered by a number of positive things that have occurred.
One of such is “old whale wallets” buying Bitcoin which was a slow and steady accumulation of the virtual currency. According to him, the old whale wallets are the “original owners of Bitcoin,” some of who dumped the asset in December 2017 when Bitcoin hit its $20,000 all-time high.
Positive Events Have Triggered a Significant Increase in Price
Lee also outlined that the reliance on Bitcoin by certain countries that are currently facing either political or economic issues also triggered the surge. The countries include Venezuela and Turkey whose adoption rate has increased significantly.
He also said:
I think we finally had a big move on April 1 [actually, it was on April 2]… wasn’t clear what caused it, but it was real evidence that there’s a lot of dry powder. The crypto community kept a lot of cash, was waiting for Bitcoin to break $3,000
Another aspect the interviewer focused on, is the Bitcoin ETFs whose approval is pending. Lee was asked how important is the approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). In his opinion, the approval would be “a huge positive development”. However, he expects that it will come in much later when we least expect.
On the aspect of Bitcoin’s fair value, the managing partner said: “So, if you were to take a combination of active addresses and activity per user, that’s explained over 90% of Bitcoin since 2013. The fair value for Bitcoin, right now, is $14,000.”
Tom Lee Predicted $25,000 Price Tag for Bitcoin in 2018
Generally, Tom Lee is extremely bullish about Bitcoin given his comments in the past. He once said Bitcoin will spike to $25,000 by December 2018. When that didn’t happen, he said Bitcoin is resilient and as such, will still hit that price even though the time frame is not certain at this time
BTCNN on March 16 also informed of Lee’s statement that the bull market will return in August this year. According to him, in the next five to six months from now, a pace will bring about Bitcoin’s bull market. He also believes that this will be a possibility if Bitcoin keeps trading above $4,000.