The Wall Street analyst changed his stance about the end-year price of Bitcoin noting that the target price mark of $25,000 is now down to $15,000. The reason for this new target is Bitcoin’s ‘’break-even point’’ or more precisely, the level which the overall cost to mine Bitcoin is the same as its trading price. According to data from his company, that point is somewhere around $7,000.
Bitcoin is currently trading at $5,555 at press time which is way below the point of $7,000. Lee, however, said that bitcoin has never really been able to sustain a move below the break-even point.
He is strongly convinced that bitcoin bill recover and he also added:
“But we believe the negative swing in sentiment is much worse than the fundamental implications.”
Lee explained a few crypto-related events that were likely the cause of the recent drop in value on the entire crypto market that happened on November 14. More specifically, he believes that the recent Bitcoin Cash hard fork has really divided the community and that this event is a big contributor in boosting the uncertainty on the market which is responsible for the recent crash.
The recent drop, three days ago, is the first major price movement among the major coins and for bitcoin in particular. Lee noted back in November that he was ‘’pleasantly surprised’’ by how stable bitcoin is. At this time he believed that Bitcoin has found its safe space at $6,000.
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