Wall Street’s Tom Lee cuts his year-end bitcoin price target by about 20%. Tom Lee told the press he sees the world’s largest cryptocurrency by the end of the year at more than $20,000 per unit — 20% less than his previous premonition. “Bitcoin has historically traded at 2.5 times its mining costs. It’s not out of the question that it could be over $20,000 by the end of the year at fair value,” the Fundstrat Global Advisors co-founder said.
“The reason bitcoin looks really good here is the cost of mining around $7,000 fully loaded. And the difficulty is rising. So, by the end of the year, it’s going to be $9,000.”
Digital currency miners use high powered computers that use a lot of electricity to complete a series of complex calculations to create a bitcoin. The bitcoin protocol calls for a finite number of bitcoins of 21 million, of which about 80% have already been made.
“I did wireless [research] in the 1990s. I saw 20 years of mobile and internet convergence. To me, this is not that different” in terms of how an industry has change over time, he said.Trade now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.
GENERAL RISK WARNING
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
76% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.