- Bitcoin’s close to 300% surge in 2020 might be adopted up by a fair stronger efficiency in 2021, in response to Fundstrat’s Tom Lee.
- In an interview with CNBC on Wednesday, Lee mentioned bitcoin may quadruple in 2021 because the crypto asset experiences the same parabolic setup that occurred in 2017.
- “2021 goes to be so much like 2017 which suggests bitcoin ought to do even higher in 2021 than it did in 2020, so one thing above 300%,” Lee advised CNBC.
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Following a powerful 2020 that noticed bitcoin march to all time highs for a achieve of round 300%, 2021 might be even stronger.
That is in response to Fundstrat’s Tom Lee, who mentioned in an interview with CNBC on Wednesday that he sees bitcoin surging one other 300% subsequent 12 months.
At its present worth of about $29,000, a quadruple in bitcoin would put the crypto asset effectively above the $100,000 mark at $116,000.
Driving bitcoin larger could be the same setup to what was seen in 2017: a parabolic rally. Lee tweeted that the halvening of 2020 makes this 12 months most much like 2016, which additionally skilled a halvening. A halvening in bitcoin is when the reward for miners finishing issues on the bitcoin blockchain is reduce in half.
2021 can be most like 2017 in that bitcoin will seemingly expertise a “parabolic rise,” Lee tweeted.
Fundstrat’s digital asset strategist David Grider additionally raised his outlook for bitcoin in a be aware on Wednesday, anticipating the crypto asset to hit a minimum of $40,000 subsequent 12 months.
“We imagine the circumstances stay in place for a continued rally in bitcoin and crypto extra broadly over the subsequent 6-12 months. Institutional and company shopping for, regulatory de-risking and retail stimulus demand are components which have led to a rise in optimistic momentum, which we imagine can proceed,” Grider mentioned.
But when the inventory market corrects subsequent 12 months, the optimistic outlook for bitcoin might deteriorate, in response to Lee.
“Bitcoin acts like a danger on asset, so within the years the place the S&P performs the perfect are additionally the perfect years for bitcoin. So I feel if now we have a correction in shares then bitcoin goes to fall,” Lee defined.
Learn extra: Jeremy Grantham’s GMO called the dot-com bubble. His firm now sees ‘very odd and speculative things’ going on again – and warns large US stocks could see negative returns over the next 7 years.