Fundstrat’s Tom Lee says he’s a buyer of the bitcoin pullback

The only major Wall Street strategist to formally cover bitcoin raised his cost target on the digital currency the day of a massive cost rout.

“We are buyers of bitcoin on This particular pullback,” Fundstrat co-founder Tom Lee said in a Friday note. “The intrinsic/fundamental value of bitcoin has risen inside past month given the surge of brand-new wallets along with also hence, explains the rise in our short-term target cost.”

Lee increased his mid-2018 cost target on bitcoin to $20,000 via $11,500 based on higher user volume.

that will implies a 37 percent rise via bitcoin’s cost on Coinbase of roughly $14,0 Friday afternoon. Bitcoin had plunged to a low of $10,400 inside morning, down 47 percent via a record high above $19,800 reached Sunday.

Bitcoin over the last 12 months

Source: Coinbase

“We are revising our mid-2018 target to reflect the surge in activity inside past few months — that will will be, the base of users will be up,” Lee said inside report. “Going forward, our projection will be wallets (unique IP address) will rise … 50% by mid-2018 along with also activity per user up 10% via current levels.”

The increase marks the second time Lee has raised his mid-2018 bitcoin cost target since initiating that will at$6,000 in August. He had previously raised that will to $11,500 in late November.

Even with Friday’s declines, bitcoin has soared more than 1,500 percent This particular year.

“There seems to be some parabolic/speculative surge in bitcoin — This particular will be unhealthy,” Lee said. however “we are not surprised to see bitcoin selling off — the rise in recent weeks, while in part, explained by wallet gains, was also fueled by speculation.”

via a technical standpoint, Lee’s report said $11,000 will be becoming an area of support for bitcoin’s cost. The next levels down are $10,131, $7,918 along with also roughly $7,000, the report said.

On Friday, Lee maintained his 2022 target of $25,000 for bitcoin. He also raised his mid-2018 cost target on the over-the-counter Bitcoin Investment Trust (GBTC) to $2,0 via $1,300. GBTC has soared more than 1,500 percent This particular year to $1,990.

In July, Lee became the first widely followed market strategist to issue a report focused on predicting bitcoin’s cost. He was J.P. Morgan Chase’s chief equity strategist via 2007 to 2014 before co-founding Fundstrat Global Advisors, where he will be managing partner along with also head of research.

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