Early this morning, Bitcoin (BTC) jumped by $1,000 in just one hour and the crypto bulls are coming in hot now. One crypto bull, in particular, Wall Street analyst Thomas Lee, believes that Bitcoin could rise to as high as $25,000, reports CNBC.
Lee told Futures Now that “We still feel pretty confident that bitcoin is a great risk-reward and we think it could reach $25,000 by the end of the year.”
Lee, co-founder and head of research at Fundstrat, was noted earlier in stating that the U.S. tax season would cause a mass crypto selloff. By now, with taxes due April 17th, he says that much of the selling pressure has begun to ease off. (Could this be another reason for the crypto market green that we’re seeing today?)
Bitcoin is currently selling for $7,693.79, which puts the coin up 11.36% in the past 24 hours. To reach Lee’s predicted price of $25,000, BTC would have to grow another 225% by the end of the year. In one year, since April 12th, 2017, Bitcoin has grown by 541%, so it’s certainly doable, but the question is, will it?
From the start of this year to now, Bitcoin’s price has dropped by 45%, according to CoinMarketCap data. This means that Bitcoin will have to recover by that much and then some in order to reach Lee’s estimated price of $25,000. Although Bitcoin has been spiralling downwards since the start of this year, since its inception in 2013, Bitcoin has grown by 5,586% overall.
According to Lee, it’s time for Bitcoin (BTC) to recover what it has lost since achieving its all-time high back in mid-December. “It’s overdue,” Lee told ‘Futures Now.’ “Bitcoin was incredibly oversold. When you look at metrics like price-to-book, which is ‘money cost,’ or our bitcoin misery index, it’s pretty much what you saw at the end of the 2014 bear market, not the start.”
Do you agree with Thomas Lee? Will Bitcoin grow to $25,000 by the end of this year?
Featured image: Forbes