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, based on Fundstrat’s Tom Lee.
• In an interview with CNBC on Wednesday, Lee stated bitcoin might quadruple in 2021 because the crypto asset experiences an identical parabolic setup that occurred in 2017.
• “2021 goes to be so much like 2017 which implies bitcoin ought to do even higher in 2021 than it did in 2020, so one thing above 300%,” Lee advised CNBC.
• Visit Business Insider’s homepage for more stories.

Following a robust 2020 that noticed bitcoin march to all time highs for a achieve of round 300%, 2021 might be even stronger.

That is based on Fundstrat’s Tom Lee, who stated in an interview with CNBC on Wednesday that he sees bitcoin surging one other 300% subsequent yr.

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 can be an identical setup to what was seen in 2017: a parabolic rally. Lee tweeted that the halvening of 2020 makes this yr most just 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 probably expertise a “parabolic rise,” Lee tweeted.

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

“We imagine the situations stay in place for a continued rally in bitcoin and crypto extra broadly over the following 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 stated. 

But when the inventory market corrects subsequent yr, the optimistic outlook for bitcoin might deteriorate, based on Lee.

“Bitcoin acts like a danger on asset, so within the years the place the S&P performs the most effective are additionally the most effective years for bitcoin. So I believe 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.