During his recent appearance on the "Odds Lots" podcast, Fundstrat's Tom Lee explained the rationale behind his Bitcoin predictions.
Fundstrat's Tom Lee has shared his thoughts on Bitcoin's price movements during his recent appearance on the "Odds Lots" podcast. According to Lee, Bitcoin is unique among other asset classes due to its cooperative nature, where those contributing to the network also stand to benefit from it.
Lee went on to recall how his firm first covered Bitcoin in 2017, when the cryptocurrency was trading at around $1,000. At the time, Fundstrat published a white paper outlining two primary variables influencing Bitcoin's price: the number of active wallets and the activity per wallet.
"We made a simple projection at that time. 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,” the strategist said.
Having said that, over 80% of Bitcoin price moves are still explained by activity per wallet.
As previously reported by U.Today, Fidelity's Jurian Timmer suggested that the underwhelming growth of the Bitcoin network might be the reason behind the cryptocurrency's failure to set new record highs in recent months.
On Monday, the crypto king sank below the $60,000 level for the first time in over a month, hitting an intraday low of $59,863, according to CoinGecko data.
Recently, Lee reiterated his previously stated price target of $150,000, which he initially announced back in June.
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