When it comes to making predictions about Bitcoin’s price, the opinions are shared. One of the most optimistic enthusiasts and investors is Tom Lee, co-founder of Fundstrat Global Advisors, also known as a longtime Bitcoin advocate.
According to Investopedia, Mr. Lee’s team of financial researchers just revealed a bullish prediction related to the world’s biggest cryptocurrency, in terms of market cap. Specifically, Fundstrat claims that the price of one BTC could go once again to $20,000 by the end of the year and might soar as high as $64,000, in a specific moment in 2019.
It’s all about mining
This prediction is related to the overall process of mining, confirms the above-mentioned source. As previously reported, Bitcoin is getting closer to its maximum supply, of 21 million coins. Therefore, the cost of mining a single Bitcoin, which has proven to be a solid support in the past, will automatically increase.
Recently, the coin passed the landmark of 17 million coins in supply, meaning that miners are close to the pre-set maximum circulation of coins.
The note issued by Fundstrat suggests that “Bitcoin miners verify and process transactions, supporting the network in exchange for mining rewards and transaction fees … we argue that the Price/Miner’s Breakeven Cost multiple has proven a reliable long-term support level, and further, that the likely trajectory of future mining infrastructure growth should underpin bitcoin price appreciation into year-end 2019.”
A rally, coming soon?
Just a few days earlier, Tom Lee also predicted a short-term rally for Bitcoin. He declared that the annual Consensus conference, taking place in New York this week, could seriously increase the price, taking it over $10,000.
7,000 cryptocurrency enthusiasts will be in the attendance and, considering that all previous four editions have all pushed the price of BTC even with up 70%, we should expect to see something similar this year.
Of course, it’s worth mentioning that these are just presumptions and there’s no guarantee that the price will automatically grow on short or long-term.