Tom Lee, Co-founder Fundstrat Global Advisors, said in an interview with Business Insider that he predicts the price of bitcoin will rise to $25,000 or more.
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His predictions are based off of the capturing of the gold market cap.
According to his research, five percent of gold’s market cap would raise the price of bitcoin to a “conservative” appraisal of $25,000.
“It’s a very — it’s actually the most conservative collection of elements to get to the five percent. Because number one, we assume that gold only appreciates essentially a nominal GDP. So there’s no inflation…The five percent number really reflects the assumption that investors will allocate in their blended portfolio only five percent to alternative currencies…Today, that allocation is much greater, it’s closer to 10 percent or 15 percent in some portfolios. So, at a five percent allocation it would value Bitcoin at $25,000. You could easily get to $100,000, $200,000 numbers,” said Lee.
Lee is semi-conservative on the cryptocurrency through mid-2018, expecting the $6000 mark to continue until then.
“…When people talk about Bitcoin’s volatility today, they’re forgetting that when we went off the dollar — the gold standard on the dollar, gold’s volatility for four years was about the same as Bitcoin’s volatility today,” Lee said.