The Bitcoin Bulls are Charging
Just 2 day after hedge fund manager Mike Novogratz said Bitcoin, the biggest cryptocurrency, will end the year at $10,000, Fundstrat’s Thomas Lee doubled his price target to $11,500 by the middle of 2018 — a 40% gainer from current levels.
Mr. Lee, who heads research at Fundstrat, said a 10% pullback earlier this month triggered by the controversial cancellation of an upgrade to Bitcoin’s underlying software has set the stage for the coming surge.
In a Note to clients Wednesday he said “The November slump cleaned up weak hands,” that almost 2X’d his prior forecast. The strategist had warned earlier in the month that Bitcoin’s rally to $7,000 from $3,500 raised the likelihood for a short-term pullback. “We no longer feel caution is warranted,” he said.
Bitcoin is currently trading $8,179.9951 as of 02.28p in New York, just short of its all-time high set Tuesday after Mr. Novogratz’s comments.
The most popular and largest cryptocurrency has surged more than 7X since December, surpassing $8,000 for the 1st time this week.
Along the way there have been 3 corrections of more than 25% all giving way to subsequent rallies on the year.
“We recommend steady buying of Bitcoin at these levels,” Mr. Lee said in the Wednesday report.
Fundstrat also boosted its price target for the Bitcoin Investment Trust, an OTC (over-the-counter) security that offers investors exposure to Bitcoin. Mr. Lee predicts it will trade at $1,300 by mid-2018, up from his earlier target of $800.
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