While the short-term price target of Bitcoin is looking bleak following Tesla’s announcement that it would no longer accept the digital asset for car payments, Fundstrat’s Tom Lee is still very bullish.
Lee told Business Insider that he expects Bitcoin to hit $125,000 by the end of the year. With the leading cryptocurrency currently trading at around $43,000, Lee’s prediction represents an almost 200% increase.
As reported by BTC PEERS, Tesla is no longer accepting Bitcoin as payment for its cars due to the environmental effects of Bitcoin mining activities.
Although many people have taken to social media to bash Musk for the sudden U-turn, Lee sees the move in a different light. According to him, the move by Tesla will encourage the crypto industry to adopt greener energy solutions. He said:
It is probably better to view it as a call to action for the bitcoin industry to focus on renewables or more efficient ways to provide proof of work.
It is very possible that Bitcoin might hit $125k before the end of the year. However, things are not looking very good for the flagship currency. As of press time, Bitcoin was trading at approximately $44,500 after reaching a 24-hour low of $42,200.