Tom Lee is the co-founder, managing partner and research head of Fundsrat Global Advisors. He was a chief strategist for J.P. Morgan Chase from 20017 to 2014. He is the only major strategist on Wall Street who covers bitcoin. As per Bloomberg, Tom is expecting an all-time high in the prices of Bitcoin in the month of July. After the 70% fall in the cryptocurrency prices, it has started to see some recoveries in the recent days.
He also told that the digital currency has an established pattern in which it has V-shaped bottoms. Also, around twenty-two 10% corrections have been registered since 2010.
Lee derived a pattern as per which throughout the “bull” periods of bitcoin it needs almost 1.7 times the span of time to recover. Keeping that in mind the last plunge of bitcoin i.e. 50 days, it will take almost 85 days to recover. In case this pattern turns out to be true, the value of bitcoin will hit the record by July.
He also added that the drop of 70% was undoubtedly severe but there is definitely a reason for its continued elasticity. During the late Novembers, Lee did advise the investors to be cautioned after the bitcoin’s prices astoundingly increased in initial November.
In that particular week of November, the prices of bitcoin hit the “first time in the history mark” by reaching $7,500. Lee has although targeted the bitcoin prices for mid-2018 to be from $11,500 to $20,000.
The Bull Run Was Due to Growth of New Wallets:
As per Tom Lee, the Bull Run was actually driven by the growth of newly introduced bitcoin wallets and also, Fundsrat was buying bitcoin despite the fall in its price. The company has projected that the wallet addresses are likely to increase up to 50% by the mid of 2018.
Lee also said that the price of $11,000 was gradually becoming a holding up price for the currency. The next expected downward support levels as per Lee are $10,131, $7,918 and $7,000.
Based upon the over-the-counter price of Bitcoin Investment Trust shifting from $1,300 to $2,200, Lee has estimated a target bitcoin price to $25,000 in 2022.