(Bloomberg) -- 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 percent and usage per account to climb 30 percent.
- Every 10% increase in user accounts adds $222 to bitcoin’s value, and each 10% 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