This is an interesting article in the press about Bitcoin price in 2017 and how experienced financial industry experts are reacting to the recent price changes in Bitcoin and their predictions for 2018.
Fundstrat’s Tom Lee says he’s a buyer of the bitcoin pullback, now sees more than 35% gains from here
Fundstrat co-founder Tom Lee increases his mid-2018 price target on bitcoin to $20,000 from $11,500 based on higher user volume.
The target raise comes after a volatile day in which the bitcoin price in 2017 tumbled to a low of $10,400, down 47 percent from a record high hit Sunday.
“We are buyers of bitcoin on this pullback,” says Lee, who is the only widely followed market strategist to issue a report focused on predicting bitcoin’s price.
Tom Lee Fundstrat Global Advisors
The only major Wall Street strategist to formally cover bitcoin raised his price target on the digital currency the day of a massive price rout.
“We are buyers of bitcoin on this pullback,” Fundstrat co-founder Tom Lee said in a Friday note. “The intrinsic/fundamental value of bitcoin has risen in the past month given the surge of new wallets and hence, explains the rise in our short-term target price.”
Lee increased his mid-2018 price target on bitcoin to $20,000 from $11,500 based on higher user volume.
That implies a 37 percent rise from bitcoin’s 2017 price on Coinbase of roughly $14,600 Friday afternoon. Bitcoin had plunged to a low of $10,400 in the morning, down 47 percent from a record high above $19,800 reached Sunday.
Bitcoin Price in 2017 Last 12 months
“We are revising our mid-2018 target to reflect the surge in activity in the past few months — that is, the base of users is up,” Lee said in the report. “Going forward, our projection is wallets (unique IP address) will rise … 50% by mid-2018 and activity per user up 10% from current levels.”
The increase marks the second time Lee has raised his mid-2018 bitcoin price target since initiating it at$6,000 in August. He had previously raised it to $11,500 in late November.
Even with Friday’s declines, bitcoins price in 2017 has soared more than 1,500 percent this year.
“There seems to be some parabolic/speculative surge in bitcoin — this is unhealthy,” Lee said. But “we are not surprised to see bitcoin selling off — the rise in recent weeks, while in part, explained by wallet gains, was also fueled by speculation.”
From a technical standpoint, Lee’s report said $11,000 is becoming an area of support for bitcoin’s price. The next levels down are $10,131, $7,918 and roughly $7,000, the report said.
On Friday, Lee maintained his 2022 target of $25,000 for bitcoin. He also raised his mid-2018 price target on the over-the-counter Bitcoin Investment Trust (GBTC) to $2,200 from $1,300. GBTC has soared more than 1,500 percent this year to $1,990.
In July, Lee became the first widely followed market strategist to issue a report focused on predicting bitcoin’s price. He was J.P. Morgan Chase’s chief equity strategist from 2007 to 2014 before co-founding Fundstrat Global Advisors, where he is managing partner and head of research.
This post originally appeared on https://www.cnbc.com/2017/12/22/fundstrats-tom-lee-says-hes-a-buyer-of-the-bitcoin-pullback.html
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