Famous bitcoin bull and financial analyst Tom Lee has again offered his two satoshis on the state of bitcoin – this time taking a broader perspective on the crypto market.
Asked whether he regrets ever commenting on bitcoin, Lee was steadfast in his message, focussing on the longer-term potential of the revolutionary technology:
“No I don’t. For me digital money and blockchain is a multi-decade story, I think we’re in the early stages..”
And when asked which decade historically the current state of the market is most comparable to, he explained:
“It might be the 80s, I did wireless in the 90s so I saw 20 years of mobile and interent convergence, to me this is not that different.”
More specifically, Lee was keen to point to a significant trend for bitcoin’s price:
“I think the reason bitcoin looks really good here is the cost of mining is around $7,000 fully loaded, and the dififculty is rising so by the end of the year its going to be close to $9,000. Bitcoin has historically traded at two and a half times its mining cost – so its' not out of the question that it could be over $20,000 by the end of the year – at fair value.”
A Difficult Market to Predict
Lee’s predictions however, have not always borne fruit.
Before the Consensus Conference in May, the analyst was very bullish about crypto prices – claiming that bitcoin could surge 70% during the week-long event. With the price of the cryptocurrency actually dropping substantially after the conference, Lee later acknowledged his error – explaining to investors that “crypto still faces significant internal resistance and hurdles within traditional financial institutions.”
With bitcoin currently up 8% for the week and trading at $6,579 – Lee’s latest bullish sentiments will no doubt fall upon receptive ears, but the outlook for now is as unclear as ever.