Bitcoin forecast ratcheted up to $6,000 by Lee as optimism grows

Thomas J. Lee, one of the most bearish stock strategists on Wall Street, is feeling a lot more optimistic about the prospects for bitcoin.

The cryptocurrency could reach $6,000 by the middle of 2018, according to a note Friday from Lee, the Fundstrat Global Advisors co-founder and former chief U.S. equity strategist at JPMorgan Chase & Co.

He said user accounts are likely to rise 50 per cent and usage per account to climb 30 per cent.



- Every 10 per cent increase in user accounts adds $222 to bitcoin’s value, and each 10 per cent rise in activity per account adds $274, Lee said.

- Lee still expects bitcoin to reach about $25,000 by 2022 amid institutional sponsorship, better transaction platforms and increasing public adoption.

- Traders should watch out for "another volatile consolidation period" into the end of August since bitcoin is getting close to resistance levels with short-term momentum becoming overbought; Fundstrat sees $4,500-$4,800 as the next resistance range.

- NOTE: July 7, biggest S&P 500 Bear says bitcoin may hit $55,000 on low supply.

- NOTE: June 23, Tom Lee, Wall Street’s biggest Bear, cuts S&P 500 EPS estimates