Will bitcoin bust the $10,000 barrier within the next five weeks or is this just a herd mentality?

Bitcoin bull Mike Novogratz recently claimed bitcoin would hit $10,000 by the end of the year.

Now, as bitcoin heads past $8,000, Fundstrat analyst Thomas Lee says he expects $11,500 by the middle of 2018. That’s a 40% increase from recent levels.

Caution no longer warranted

Earlier this month, Lee had cautioned about a possible pullback from $7,000 but now he says, “We no longer feel caution is warranted,” thanks mostly to the recently postponed hard fork in the digital currency.

Not bad for an investment some Wall Street and international bankers have called a “fraud.”

In a note to clients and investors, Lee was quoted by Bloomberg:

“We recommend steady buying of Bitcoin at these levels,” Lee said in the Wednesday report. 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.

All hat and no cattle?

Of course, all the bullish talk needs to be tempered by reminders of risk, market psychology and the always dangerous herd mentality.

Still, prices up seven times from a year ago? Few but the brave predicted it but like every market, there is always a plateau, a plunge or to and then questions while the market assesses conditions and moves ahead in one of only two directions.

Is this bitcoin market all hat and no cattle? It’s not looking so at present.

For another bearish view of the bitcoin market, read “Bitcoin in peril: “Unchartered waters,” says Cumberland CEO.”

Chart: Courtesy Bloomberg; Photo: Pixabay