- Fundstrat co-founder, Tom Lee predicted Bitcoin price to be $36,000 towards the end of 2019.
- This increase would be reportedly caused by Bitcoin mining activities.
The analysis of the relationship between the cost of mining Bitcoin and Bitcoin price by Fundstrat’s Quantamental Strategist, Sam Doctor, has led the company to forecast that Bitcoin price range will fall between $20,000 and $64,000 by the end of the year 2019.
The estimates focused on Bitcoin Price to Mining Breakeven Cost Metric, known as P/BE, which Sam said has “proven a reliable long-term support level.” Tom Lee posted an executive summary of the findings on Twitter:
CRYPTO: Our quant/data scientist @fundstratQuant publishing #bitcoin mining white paper. Crypto mining economics lead/explain $BTC price—suggests $39,000 per bitcoin by YE19. key takeaways below… pic.twitter.com/f5ZQ4py3jS
— Thomas Lee (@fundstrat) May 10, 2018
The Bitcoin price target in the findings is broadly in line with Tom’s own recent prediction of $25,000 by the end of 2018. Both Tom and Fundstrat had remained bullish on Bitcoin in recent months, a survey carried out in April revealed that about 82 percent of institutional investors hold that the price of bitcoin had already “bottomed out.”
The survey also contained a prediction question, with the highest number of respondents opting for a range of between $10,000 and $20,000 by the end of 2018.