Wall Street analyst and co-founder of Fundstrat Global Advisors Tom Lee is still optimistic about long-term growth prospects for bitcoin and is confident that by the end of 2018 the first cryptocurrency will reach $25,000, CCN reports.
“As before, we are confident that Bitcoin has an excellent risk-earnings ratio and we think that he can reach $25,000 by the end of the year,” Lee said.
Currently, bitcoin is trading around $8,100. This means that in order to achieve a forecast of $25,000, which is 25% higher than the December highs, the “digital gold” should grow three times more.
Nevertheless, the head of Fundstrat considers this target mark quite achievable. According to him, the recent rapid decline in the price of bitcoin is left behind and now the cryptocurrency is in an “incredible oversold”.
Low values of bitcoin prices in late March – early April, Lee associates with the approach of the last date for filing tax returns by US investors. According to his calculations, American traders owe the state about $25 billion in taxes from the revenues they received as a result of operations with cryptocurrencies. Many traders, Lee notes, over the past few weeks have got rid of some of their bitcoin assets in order to minimize the capital gains tax.
Earlier, Tom Lee presented the so-called “index of poverty” for bitcoin, with which you can determine the most successful moments for buying the first cryptocurrency.
Currently, the index shows the lowest values since September 2011. This, Lee believes, is a good signal for opening long positions aimed at a long-term perspective.