On Thursday, Fundstrat Global Advisors’ Tom Lee made comments on CNBC that some observers saw as a retreat from earlier statements forecasting a Bitcoin price increase to $25,000 by year’s end. Later in that day, Lee clarified his position, suggesting that the price of the world’s most well-known digital currency could conceivably reach that $25,000 level.
His comments on CNBC’s Squawk Box early Thursday were interpreted by many in the media as a sign that Lee was adopting a more bearish outlook on Bitcoin’s immediate future. Lee had noted, “it’s not out of the question that it could be over $20,000 by the end of the year,” which some saw as a downward revision of his prior forecast.
In a later appearance on the network’s Fast Money, however, Lee said that he misspoke and reaffirmed his $25,000 forecast. When asked whether he still stands by that number, he said:
“I do think it’s the first time I’ve ever heard someone thinking something could triple is a bearish comment. I may have misspoken a little bit. I think what I was trying to illustrate was that, given where mining costs will be and applying the historical average of 2 and a half times mining costs, that would imply fair value over $20,000 - roughly $22,000. So, we still think Bitcoin can reach $25,000 by the end of the year – or something like that.”
Lee also pointed to mining costs as one reason for his optimism. He noted that Bitcoin has been trading below mining costs, something that he called “unusual.” He said that “Bitcoin’s had a positive return in nearly 100 percent of instances whenever it’s traded below mining costs.”