Tom Lee trimmed his Bitcoin end of the year  prediction down to $15,000 from his earlier prediction of $25,000 in a statement recently. Bitcoin is among the cryptocurrencies that took a massive hit due to the recent sell-off that was set-off by the contentious arguments on Bitcoin Cash fork.
Thomas Lee aka Tom Lee is the co-founder of Fundstrat Global Advisors and is one among the people who are known for their wild predictions on Bitcoin [BTC].
Tom Lee explained that this new prediction came as a result of Bitcoin dipping below the ‘break-even” point. Break-even point is the level where the mining costs are equal to the trading price. According to Fundstrat’s data science team, the break-even point has come down to $7,000 as compared to the earlier break-even price, which was predicted to be $8,000. These tests were conducted on Bitmain’s S9 miners.
Based on the break-even price, Tom Lee re-predicted the price that Bitcoin might hit at the end of the year.
“While bitcoin broke below that psychologically important $6,000, this has lead to a renewed wave of pessimism, but we believe the negative swing in sentiment is much worse than the fundamental implications.”
Lee said the recent double-digit crash of most cryptocurrencies like Ethereum [ETH], XRP and Bitcoin were triggered by “crypto-specific” events. The most obvious crypto-specific event was the “hash wars” which was due to the forking of Bitcoin Cash to Bitcoin ABC and Bitcoin SV.
Lee first predicted the price of Bitcoin would reach $25,000 by the EoY on July 5, 2018, which sent shockwaves and speculations in the crypto community.
Lee’s had said:
“Bitcoin has historically traded 2.5 times its mining cost, so it’s not out of the question that it could be $20,000 by the end of the year.”
The current price of Bitcoin is $5,530, and for it to reach $15,000 by the EoY, the price has to rally by an excess of 171.24%. The recent sell-off has caused the market cap of Bitcoin to collapse below the $100-billion line and is currently at $96.12 billion.
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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.