Cryptocurrency markets lost over $30 billion last week. Bitcoin’s price fell below the key $6,000 level. BTC now trades around $5,500 — the lowest point in 12 months. The latest price crash puts bulls on the back foot and fuels market pessimism.

Bitcoin Cash was among the biggest losers in the top 10. Its price dropped from $630 at the start of the week to $380 now. That’s a loss of nearly 40% in just seven days.

Tom Lee Declines his Bitcoin Price Prediction for this year

The unexpected selloff in the Bitcoin price has compelled Tom Lee to drop his fiscal 2018 BTC price prediction from $25,000 to $15,000. Though the analyst has trimmed the BTC price prediction, he is still optimistic that BTC is still in sound fundamental position.

He said, “While Bitcoin broke below that psychologically important $6,000, this has lead to a renewed wave of pessimism, but we believe the negative swing in sentiment is much worse than the fundamental implications.”

He claims the crypto market selloff was caused by a specific event. It wasn’t driven by fundamental factors with long-term effects.

Lee bases his price prediction on mining costs and breakeven levels. He explains, “Bitcoin has historically traded at 2.5 times its mining cost. So, it’s not out of the question that it could reach $15,000 by year-end.”

According to Tom Lee’s data science team, Bitcoin’s mining breakeven point is about $7,000. He believes BTC can trade at 2.5 times that level.

Is it Possible for BTC to Create a Substantial Bull-Run?

BTC has the history of making significant price swings in both directions due to some specific event or market speculations. This is why it’s quite difficult to predict where BTC would stand in the long and short term. With bulls on back foot after the recent sharp decline, it’s clear that the latest sell-off was triggered by a specific event, while the market fundamentals remain strong — thanks to the entrance of Goldman Sachs and other institutions.

What’s your opinion of Tom Lee’s new price prediction? Let us know about your thoughts in the comment section below.