During the past few days, the price of Bitcoin has increased substantially; such that in less than 48 hours, it had an increase of more than 20 percent.
It seems that the value of cryptocurrencies was profitable for the companies in this industry. According to Bloomberg, stocks related to cryptocurrencies had a considerable increase both in Asia and the U.S. in that same period.
This week the price of Bitcoin went from its highest in 2019 at $4200 to $5000.
Tom Lee, from Advisors Global Fundstart, believes that Bitcoin’s fair value in the current market is about $14,000. Research manager and management partner has said that due to positive changes in the market, old Bitcoin whales (people who have a great power and share in the crypto market) have turned to buying Bitcoin on a large scale again.
While hugely profitable trades exist in the crypto community, many believe that the increasing move of the crypto market is the result of a big player buying 20,000 Bitcoins from three different exchanges. Sine only one big whale has made all this change in the crypto market, an analyst has warned that if the rest of the buyers do not enter the market with a large bulk of trades, the value of Bitcoin will fall sharply.
According to remarks by Tom Lee, many of these old whales sold their shares in the mid-December, 2017, after Bitcoin price reached $20,000. It seems that the changes in the market tendencies will lead to a positive end. Early this year, Tom Lee published his outlook for 2019 which included a general market trend. Lee believes that developments such as Bakkt and Fidelity security solution will increase the price of Bitcoin in 2019.
Also, Tom Lee pointed to the increase in the Bitcoin profit in the turbulent global economy. In countries such as Venezuela and Iran where the economy is in severe turmoil, people are constantly turning to cryptocurrencies. According to the previous report by Bitcoinist, the government of the U.S. is looking to ban Visa and Master Card to hinder the ease of payment in Venezuela. These moves will only make people tend toward Bitcoin.
Regarding the price of Bitcoin, Tom Lee points to his previous claim that cryptocurrencies with high grade are still being traded with their actual value. According to the management partner at Fundstart, the real value of Bitcoin is around $14,000. According to his claim, Bitcoin is currently being traded 40 percent under its real value. Tom Lee has done a precise analysis on the Bitcoin market using active addresses and the activity of each user which shows that the value of this cryptocurrency is $14,000.
The director of Fundstart believes that a product should be traded 2.5 times its value without profit or loss in the increasing market. Yet, the mining of Bitcoin without profit or loss is presumed to be between $5000 and $6000.
How High Will Bitcoin Price Increase?
Since the rising tide of Bitcoin price in April 2, 2019, all discussions revolved around this point that the increasing trend of Bitcoin price will be over at the end of this tide. With the increase in price that it experienced on Tuesday, Bitcoin value is turbulent around $5000 which is considered as the support price.
Brian Kelly from BKCM institute predicted that Bitcoin value will be grown from $6000 to $6500. The crypto market compensated for most of its losses by mid-February and after that, the price started increasing. This is not the first time that the winter of cryptocurrencies has ended, but there are hopeful signs. From what can be seen from the support level, during the past three months market tendencies have improved gradually.