In a recent interview on CNBC’s Squawk Box, the Fundstrat co-founder doubled down on the price target he set just a week prior note to investors when Bitcoin was trading for roughly $5,600. In this letter, Lee provided guidance on what Fundstrat still sees as Bitcoin’s fair value based on the current energy and device costs associated with mining a single coin.
Bitcoin plunged 16% Tuesday and fell as low as $4,200.22.
— CNBC (@CNBC) November 20, 2018
In the interview, Lee points to institutional investors as the major catalyst that he is watching, calling the current situation nothing more than an “awkward transition.”
“Institutional backing will come soon,” Lee said. “You will get it partly through infrastructure, like Bakkt, which is launching soon. Part of it is going to come through regulatory clarity.”
However, a portion of this adoption is set to be delayed until next year as Bakkt, the new crypto exchange venture backed by Intercontinental Exchange (ICE), is pushing back the launch of its Bitcoin futures trading product from December 12 to January 24, 2019.
Lee also admitted his surprise regarding the current price action, stating that it isn’t currently confirming Bitcoin’s fundamentals, which he believes are still very much intact long term. Given how fast things change in the industry, it is perhaps better for Lee, and other analysts, to stick to broader timelines.
BTC is currently trading for $4,480, giving the largest cryptocurrency a $77.9 billion market cap and a 235% upside to Lee’s current price target.
More: Bitcoin Bull’s Mea Culpa
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.