- Bitcoin’s incredible 300% increase in 2020 may lead to an even stronger showing in 2021, according to Fundstrat’s Tom Lee.
- In a CNBC interview, Lee claimed bitcoin might quadruple in 2021 as the crypto has a parabolic setup like the one that occurred in 2017.
- “2021 will be very similar to 2017 which means bitcoin might do even better in 2021, maybe somewhere above 300%,” Lee said to CNBC.
Following a huge 2020 that had bitcoin going to all time highs for an increase of over 300%, 2021 might be even better.
That’s coming from Fundstrat’s Tom Lee, who predicted in a CNBC interview that he sees bitcoin sky-rocketing another 300% in the next 12 months.
With its current value at $29,000, a quadrupling in price would put the asset at $116,000.
Pushing bitcoin higher would be reminiscent of 2017, when a parabolic rally occurred. Lee tweeted that 2020’s halvening makes it similar to 2016, when bitcoin also had a halvening. A halvening is when the reward for miners finishing problems on the blockchain is cut by 50%.
2021 will be like 2017 in that bitcoin will have a “parabolic rise,” Lee tweeted.
David Grider, the digital asset strategist from Fundstrat’s also increased his prediction for bitcoin, expecting the asset to reach at least $40,000 in 2021.
“We believe conditions are creating a continued rally in bitcoin over the next 1 year. Institutional and larger investors buying in, regulatory de-risking and stimulus demand are leading to a surge in momentum, which we think can continue,” Grider stated.
But if the market corrects in 2021, the positive future for bitcoin may evaporate, according to Lee.
“Bitcoin behaves like a risk on asset, so in the years where the S&P performs well, bitcoin also performs well. So I believe if stocks see a correction, then bitcoin will also fall,” Lee said.