Coinspeaker
Fundstrat ‘s Tom Lee Sets $25k Price Target for Bitcoin Comparing It to FAANG Stocks

On 15 November, during an interview for CNBC journalists, Tom Lee gives price prediction to set some fire. Cryptocurrency will show its potential as a “network value asset”, according to Tom. He said Bitcoin is similar to FAANG stocks that represent the top companies of the U.S. economy: Facebook, Apple, Amazon, Netflix, and Google.

By referring to the shares of the companies above, Tom inkles that cryptocurrencies are gaining their value from supportive crowds:

“Cryptocurrencies are network value assets, meaning the more people hold the asset, the greater the value. It’s a log function — so if you double the users hold it, you get a quadrupling of value. To go to $25,000, you essentially need a little less than 4x rise, which means you need to double the number of people who hold Bitcoin.”

Back in 2017, Fundstrat set the prediction that Bitcoin will cost $25,000 by 2022. This was a part of their 5 years plan, which notes that more than half a million unique people are using Bitcoin right now. To get the price of Bitcoin to move to new heights, Tom suggests that Bitcoin’s user base should be doubled.

According to Lee, the fact that companies from Silicon Valley got to the top of the American economy is explained logarithmically. Their stories of success can be seen through the language of math now, which shows that cryptocurrencies have some similarities with the stocks of those tech giants.

“70% of their return [since IPO] is explained by the growth of the global Internet in that time. In other words, it’s a LOG function of the Internet’s growth, and that’s how cryptocurrencies are going to work [too].”

Lee also highlights that he was a Bitcoin bull for a very long time. He recognizes these days as the earliest ones in the history of cryptocurrency. After the proper regulation rules will be developed, Tom imagines how cryptocurrency industry will rise to a new level. He is ready to set new standards in trading, banking, and finance to help the industry’s network effects to enrich early believers and current investors.

Realistically, Lee thinks that the market will remain silent:

“Bitcoin needs to consolidate its gains.”

Some experts blame Bakkt’s low volumes and weak launch and Bitfinex vs. NYAG case as two main reasons behind the falling Bitcoin price. But Tom Lee is sure that you must not blame Bakkt over the matter. The exact reason for prices falling this fall is because the market needs to consolidate.

After making big moves at the beginning of 2019, the traders are establishing a reverse trend, and the hope for 20k in New Year seems to be barely a sweet dream.

Fundstrat ‘s Tom Lee Sets $25k Price Target for Bitcoin Comparing It to FAANG Stocks

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