Prominent Bitcoin bull and Fundstrat Founder Tom Lee has mentioned during a CNBC Squawk Box program earlier today that Bitcoin is way below its ideal value. He said Bitcoin is only trading at 40% of its actual price despite the price surge experienced in the last few days.
Many have tried to explain the surge with Bloomberg saying it is due to the April Fool’s joke that the SEC approved Bitwise and VanEck ETF applications. Lee, however, thinks differently:
“Finally, we had a big move on Apr. 1. It wasn’t clear what caused it, but it was a shred of real evidence that there is a lot of dry powder, The crypto community kept a lot of cash and was waiting for Bitcoin to break $3,000.”
Although he did not make any price predictions this time, Lee said the approval for a Bitcoin ETF will take longer than most think even though it will add significantly to the growth of the industry. On Bitcoin investment, Lee said holders of the asset have to HODL for long to make reasonable gains as Bitcoin only gains in 10 days out of the 365 days in a year.
Lee had mentioned in December 2018 that Bitcoin should be valued at $13,800 to $14,800. Lee has always argued that the number of wallets on the Bitcoin network is enough to take it much higher than it has been. As at the time, investors were skeptical about investing in the asset for fear of losing in a meltdown.
The Fundstrat founder is a well known Bitcoin bull who has always believed Bitcoin would go high and his optimism has not waned despite the rough ride in the market. Earlier this year, Lee said Bitcoin would need at least six months to make a significant break out of the bear market. He also mentioned that Bitcoin will see a significant recovery before the end of the year although it wouldn’t be the breakout the industry looks forward to.
Although he believes $14,000 is the right price for Bitcoin right now, Lee expressed doubt that the price is attainable by the end of 2019. The bull run is still early and so is the year, and from every indication, the surge is still brewing with a potential to amass more gains in the next few weeks. Hopefully, Tom Lee’s “ideal” price will become a reality eventually.