Tom Lee Is Back With Another Prediction: Bitcoin to Hit $91,000 in 2020
Tom Lee, Fundstrat Global Advisors’s Managing Partner and Head of Research, and his team, believe that Bitcoin will reach a value of $91,000 in the next two years. The prediction is based on a chart which includes notable price declines since 2010. Instead of using linear charts, similar to the ones used in Coin Market Cap, the team opted for a logarithmic chart.
Four Major Declines in the Chart
The first price drop to hit a low of 93% was noted from June to November in 2011, in a bear market. The next decline of 70% was found in a bull market, from 2011 to 2013. This was followed by an 86% drop in price following the events of 2013. It also extended for a period of two years in a bearish market. The last slump occurred recently this year, where the price dropped by 70%. The market from 2015 to 2020 has been perceived by the Fundstrat team to be a bull market. As per the chart, Bitcoin’s journey will be an upward slope from now onwards.
Tom Lee’s Previous Predictions
The first time Lee talked about bitcoin’s price was in August 2017 when he believed that the price could hit $6,000 by mid-2018. However, the next month, he came up with a bigger number – $25,000 in 2018. When BTC crossed $10,000, Lee said it could easily attain a value of $100,000 by 2027, “We think over the next 10 years, this new generation of millennials are going to view trust as a replacement for gold. So, Bitcoin is essentially digital gold for another generation.” This month, he made another estimate which includes Bitcoin hitting $20,000 by mid-2018.
Lee has also openly defended the price in interviews as well as his Twitter account. Talking about the recent market decline, he said that negative headlines were responsible for creating panic in buyers.
When sentiment is this awful in a market (#bitcoin, stocks,), we tend to see "FIRE, ready, aim"–meaning, bitcoin is vulnerable to selloff on negative headlines. Technicals also not strong. Does not change positive med. or long-term picture. Patience needed… and perspective.
— Thomas Lee (@fundstrat) March 15, 2018
The Fundstrat team also developed the Bitcoin Misery Index (BMI) which calculates BTC’s trading value to help investors find the best time to buy the cryptocurrency.