During his recent appearance on the "Odds Lots" podcast, Fundstrat's Tom Lee explained the rationale behind his Bitcoin predictions.  

"Bitcoin is unlike other asset classes because there is a cooperative value. You know, those people who contribute to the network benefit from it, and that's different from any other asset class," Lee explained.   

Lee recalled that his firm first wrote about Bitcoin in 2017 and Bitcoin was around $1,000 at the time. Back then, Fundstrat published a white paper, which explained that there's two main variables that determine the price of Bitcoin: the number of active wallets and the activity per wallet. 

"At that time, we made a simple projection. We said that in five years, by 2022, if the number of wallets went up by 70%, and activity per wallet went up by 40%, Bitcoin would be $25,000 by 2022," Lee said. 

The permabull called Bitcoin an "incredible technology" since it is so secure that it has never been hacked in 14 years of its existence. "Not a single entry on the Bitcoin ledger is fraudulent," he added. 

That said, over 80% of Bitcoin price moves are still explained by activity per wallet.

As reported by U.Today, Fidelity's Jurian Timmer has suggested that the underwhelming growth of the Bitcoin network could be the reason why the cryptocurrency failed to record record highs in recent months. 

On Monday, the crypto king slipped below the $60,000 level for the first time in more than a month, touching an intraday low of $59,863, according to CoinGecko data.  

Recently, Lee doubled down on his previously stated price target of $150,000 back in June.