Tom Lee, the Fundstrat Global Advisors executive has explicitly placed his view about the ”fair worth of Bitcoin” being much higher than the present cost. In an interview with Bloomberg on 13th December, the head of research at Fundstrat has blatantly remarked about the distressing market scenario. The condition has spawned due to the major drop in Bitcoin value, first time recorded ever since its price skyrocketed to touch almost $20,000 mark in the last December bull run.
During the interview, he had come up with a solution ”to resolve for the existing cost of Bitcoin, this suggests crypto pocketbooks must be up to 17 million from 50 million currently.” The extreme hype of Initial Coin Offerings (ICOs), which was noticed in early 2018 and late 2017 has currently witnessed a considerable fall because of bad tokens, over-funding and rise in fraudulent activities. However, previously in 2014, when the price of the top most cryptocurrency spiked up, Lee linked it to the treasury sales during tokenisation and ”meltdown” at the macroeconomic level.
Lee has estimated that the reasonable value of the coin holding more than 54% of the total market cap should have the supply accounts amounting $13,800 and $14,800 with regards to the use of each account and the number of wallets addresses actively used. A diversifying opinions have emerged from the crypto analysts and critics pointing out that the coin will dip to $2,500 level and the value of the entire crypto world may reduce to zero, respectively.
Bitcoin Cash [BCH] Hardfork Impact
Following the Bitcoin Cash [BCH] hardfork last month, the entire crypto market plunged to great depths with the most valuable digital asset in terms of its market cap plummeting almost 48.4% in its price. In the dismal market condition, the coin has shaved off a chunk of nearly $50 billion from its market cap.
The significant downfall in the crypto-market can be recovered by pushing up the adoption rate of virtual currencies, which would contribute in the making of Bitcoin a universal currency. Lee upheld that the fair worth of the crypto would reach $150,000 mark if the budget holders of Bitcoin encourage 7% of the Visa’s 4.5 billion account owners. As per his anticipation, the coin is likely to end the year trading at $15,000.