Bitcoin

Tom Lee: [BTC]’s dip below break-even point will see cryptocurrency hit only $15,000 by EoY
Tom Lee trimmed his Bitcoin end of the year [2018] 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.
He stated:

“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.