Bitcoin price (BTC/USD) poised for 40% rise, says Wall Street strategist

Wall Street strategist Tom Lee raises bitcoin forecast, now predicts 40% rise

Wall Street strategist Tom Lee raises bitcoin forecast, now predicts 40% rise

Speaking with Bloomberg Daybreak: Americas yesterday, Novogratz said that "I think we'll hit a new high soon. we'll end the year at $10,000 in bitcoin".

In a Note to clients Wednesday he said "The November slump cleaned up weak hands", that nearly 2X'd his prior forecast. In our view, this move to $5,600 cleaned up weak hands and we no longer feel caution is warranted ...

Bitcoin rose 1.2% to $8 230.12 as of 11.05am in NY, about $100 short of its all-time high set on Tuesday after Novogratz's comments. It surpassed the $8,000 level for the first time Sunday, according to data from industry website CoinDesk.

Along the way there have been 3 corrections of more than 25% all giving way to subsequent rallies on the year.

"A few weeks ago, we turned short-term neutral on bitcoin as the price level then (~$7400) exceeded our estimate of fair value", Lee said in a report to clients, as quoted by CNBC. Fundstrat also boosted its price target for the Bitcoin Investment Trust, an over-the-counter security that offers investors exposure to bitcoin. Lee predicts it will trade at $1,300 by mid-2018, up from his earlier target of $800.