Tom Lee of Fundstrat fame is sticking to a bold prediction regarding bitcoin – the world’s number one digital currency by market cap – that he made earlier in the year. In a recent interview, he stated that he still sees bitcoin hitting $100,000 per unit by the end of 2021.
Tom Lee – BTC Could Reach $100K Before 2022
Tom Lee is no stranger to making bitcoin price predictions. For the most part, they have been a little outlandish – either because there is a lack of time for bitcoin to make such major moves, or because his jump predictions come during times when bitcoin was not doing so hot. In this case, the former applies.
For the most part, bitcoin is on a path towards recovery from its recent fall below the $30,000 mark. The currency lost more than 50 percent of its value after hitting a mid-April high of approximately $64,000 per unit, and while things remained rough for about three months, the currency has seemingly shot back up towards $46,000. This is a surefire sign that things are starting to improve.
However, the asset is still nowhere near its most recent high of $64K, which was itself well below $100,000. For Lee’s prediction to come true, bitcoin would need to gain more than $54,000 within the next four months. While this is not necessarily impossible (bitcoin has, after all, surprised us on many occasions), it is not entirely probable.
Lee believes that the stock market is likely to rally in the coming weeks following drops in COVID cases surrounding the new delta variant. He is confident that this rally could lead to everything jumping from bonds to crypto to precious metals, and he thinks – during this time – that bitcoin could reach six-figures. He states:
A hundred thousand into the year-end is pretty reasonable. While the hysteria around the continued surge in delta variant infections continues to grow, the IHME (Institute for Health Metrics, forecasters used by global policy makers) forecasts USA COVID-19 infections to peak this week. What is also interesting is the IHME is not forecasting a fall surge. That is, they are not expecting a renewed wave of cases in the fall. The fall is back-to-school season, plus the start of the flu season. Yet, the IHME sees this wave petering out.
Taking a Break from Price Predictions
There was a time when Lee was consistently making predictions regarding the bitcoin price, though he later came to the decision that his firm should lay off making such statements for a while, claiming that they would look more at the behavior of bitcoin rather than work to predict its next moves.
Sometimes, however, Lee’s predictions don’t reach far enough, such as in early 2020, when he suggested that bitcoin would double its $8,600 price by the end of that year. The currency wound up trading for nearly $30,000 before 2021 entered the fray.