Bitcoin could quadruple in 2021 as the digital currency sees a rally similar to 2017, Fundstrat’s Tom Lee says | Currency News | Financial and Business News

• Bitcoin’s close to 300% surge in 2020 might be adopted up by a fair stronger efficiency in 2021, in line with Fundstrat’s Tom Lee.
• In an interview with CNBC on Wednesday, Lee mentioned bitcoin may quadruple in 2021 because the crypto asset experiences an analogous parabolic setup that occurred in 2017.
• “2021 goes to be quite a bit like 2017 which implies bitcoin ought to do even higher in 2021 than it did in 2020, so one thing above 300%,” Lee informed CNBC.
• Visit Business Insider’s homepage for more stories.

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 line with 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 properly above the $100,000 mark at $116,000.

Driving bitcoin larger could be an analogous 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 lower in half.

Learn extra: GOLDMAN SACHS: Buy these 37 stocks that could earn you the strongest returns without taking on big risks in 2021 as the recovery and vaccine distribution get underway

2021 will likely be most like 2017 in that bitcoin will doubtless expertise a “parabolic rise,” Lee tweeted.

Fundstrat’s digital asset strategist David Grider additionally raised his outlook for bitcoin in a word on Wednesday, anticipating the crypto asset to hit at the least $40,000 subsequent 12 months.

“We imagine the situations 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 elements which have led to a rise in constructive momentum, which we imagine can proceed,” Grider mentioned. 

But when the inventory market corrects subsequent 12 months, the constructive outlook for bitcoin could deteriorate, in line with 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 we now 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.