Over the past few years, Fundstrat’s Tom Lee has gotten quite the reputation for predicting where bitcoin’s price will go. He’s been off here and there, which has likely gotten a lot of people to lose faith in his words but considering that bitcoin has been on a heavy bull run over the past few months, his recent prediction is likely hitting home for a lot of digital traders and enthusiasts.
Tom Lee Is At It Again with BTC Predictions
Thus far, bitcoin has risen by roughly 300 percent since the beginning of 2020. Now, as we enter the first few days of the new year, bitcoin is striking new chords and has risen beyond the $33,000 mark, reaching a new all-time high and giving crypto owners bigger ideas about where their money will go in the coming future.
Lee was quick to capitalize on bitcoin’s sudden gains. He’s confident that the currency could potentially spike another 300 percent before 2021 is over and done with. This would cause bitcoin to surge to roughly $116,000 per unit by the time the year is out. Could it be done?
In his arguments for why the spike is possible, Lee commented that the bull run of the last 12 months is similar with one that was witnessed in 2016. Given that bitcoin underwent forks in both that year and 2020, he says that 2021 is likely to be rather similar with 2017, in which bitcoin will now really reap the rewards of the previous year’s halving and strike new prices for everyone who’s trading.
Other Fundstrat analysts are offering similar sentiment, such as David Grider, who thinks that the asset everyone has come to love could strike $40,000 sometime in 2021. Not as big as what Lee is stating, but still a solid number in many ways. In a recent interview, he claims:
We believe the conditions remain in place for a continued rally in bitcoin and crypto more broadly over the next six to 12 months. Institutional and corporate buying, regulatory de-risking and retail stimulus demand are factors that have led to an increase in positive momentum, which we believe can continue.
However, where Lee sees bitcoin failing is through its alleged correlation with the stock market. He mentions that should the stock market experience a correction in 2021, bitcoin is likely to fall in price.
It Will Do What the S&P Does
Bitcoin acts like a risk on asset, so in the years where the S&P performs the best are also the best years for bitcoin. So, I think if we have a correction in stocks then bitcoin is going to fall.
Throughout 2018, Lee continued to predict that bitcoin would end the year on a high note despite several full-scale drops that led the asset to lose 70 percent of its value by November.
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