According to U.Today, Tom Lee of Fundstrat recently appeared on the 'Odds Lots' podcast to discuss his Bitcoin predictions. Lee highlighted the unique nature of Bitcoin as an asset class, emphasizing its cooperative value. He explained that those who contribute to the Bitcoin network benefit from it, a characteristic that sets it apart from other asset classes.
Lee's firm first wrote about Bitcoin in 2017 when it was valued at around $1,000. Fundstrat published a white paper at the time, identifying two main variables that determine Bitcoin's price: the number of active wallets and the activity per wallet. Lee stated, 'At that time, we made a simple projection. We said that in five years, by 2022, if the number of wallets went up by 70%, and activity per wallet went up by 40%, Bitcoin would be $25,000 by 2022.'
Lee also praised Bitcoin as an 'incredible technology,' noting its security and the fact that it has never been hacked in its 14-year existence. He added that 'Not a single entry on the Bitcoin ledger is fraudulent.' However, he also acknowledged that over 80% of Bitcoin price moves are still explained by activity per wallet.
Fidelity's Jurian Timmer has suggested that the underwhelming growth of the Bitcoin network could be the reason why the cryptocurrency failed to record record highs in recent months. On Monday, Bitcoin slipped below the $60,000 level for the first time in more than a month, touching an intraday low of $59,863, according to CoinGecko data. Despite this, Lee remains optimistic about Bitcoin's future, having reiterated his previous price target of $150,000 back in June.