Bitcoin and crypto bull Tom Lee is offering an explanation for why his predictions on the year-end price of BTC have not come to pass.
In a new note to clients, the co-founder and head of research at Fundstrat says the market has severely undervalued Bitcoin throughout the year, largely due to a “meltdown” in initial coin offerings (ICOs) and an overall downtrend in the global economy.
As reported by Bloomberg, Lee believes that the growing number of crypto wallets and the limited supply of BTC indicate the price of Bitcoin should between $13,800 and $14,800.
“Fair value is significantly higher than the current price of Bitcoin. In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”
In the long run, Lee believes continued adoption of Bitcoin and its institutional adoption as an asset class will move the price of Bitcoin higher.
“If Bitcoin wallets approach just 7 percent of the Visa’s 4.5 billion account holders, fair value would be $150,000 per Bitcoin.”
Lee had initially predicted the price of Bitcoin would reach $25,000 by the end of 2018. In November, he lowered that figure to $15,000. Bitcoin is currently trading at $3,387 at time of writing, according to data compiled by CoinGecko.