Tom Lee, the managing partner and head of research at Fundstrat Global Advisors, has almost doubled his forecast for bitcoin. He now expects the scorching-hot cryptocurrency to hit $11,500 by mid-2018, up from his previous estimate of $6,000 released in August.
The adjustment comes just a few weeks after Lee turned neutral on bitcoin, when it was hovering around the $7,400 level. At the time, he felt that there were simply too many “weak hands” holding the cryptocurrency with low conviction, leaving it susceptible to a sharp drop at the first sign of turbulence. In his mind, the appropriate level to start loading up on more bitcoin was around $5,500.
And sure enough, bitcoin fell last week to $5,600, which Lee says wiped out those fickle holdings and allowed him to resume his bullish view.
“This move to $5,600 cleaned up weak hands and we no longer feel caution is warranted,” Lee wrote in a note to clients on Wednesday…