The bitcoin price has climbed 30% year-to-date and is holding just under $5,000 after an early-April rally, but it’s still undervalued by a ridiculous margin.
Fundstrat Global Advisors co-founder Tom Lee not only believes that this week’s increase is justified, but he told CNBC the BTC price fails to reflect fair value, which he says is $14,000. Using this measure, bitcoin is currently trading at approximately 64% below its fair market value.
Fundstrat’s Lee bases his assessment on the number of active bitcoin addresses coupled with activity per user, which for the most part has not failed him yet. Lee also factors in the bull market and the BTC mining breakeven price, the latter of which has fallen from a range of about $6,000 to $8,000 last year to between $5,000 and $6,000 now.