On November 21 hedge fund manager Mike Novogratz said that Bitcoin will end the year at $10,000. The next day Thomas Lee, head of research at Fundstrat, doubled the price target saying that it will reach $11,500 by the middle of 2018. The new price target will constitute a 40% increase from Bitcoin’s current levels.
According to Lee, the anticipated rise can be attributed to a 10 percent pullback earlier this month which was caused by the cancellation of the Bitcoin underlying software upgrade.
The strategist had warned about the possibility of a short-term pullback. His forecast turned out to be true when the prices fell to $5,600 last week. However, the prices jumped back, and on Wednesday Lee wrote to his clients, “This move to $5,600 cleaned up weak hands and we no longer feel caution is warranted.”
Bitcoin has been on a wild ride this past few months. Since December its price has increased sevenfold, and this week it exceeded $8,000 for the first time. The ride has been rough sometimes, and this year Bitcoin experienced three dives of more than 25%. Each of these dives, however, has led to a subsequent rally.
In his Wednesday report Lee recommended “steady buying of Bitcoin at these levels”. In addition to that, Fundstrat predicted that the Bitcoin Investment Trust will also rise. The price target is set at $1,300 by the middle of 2018 with its previous target being $800.