As BTC looks to end 2020 with massive gains of about 300%, Fundstrat’s Tom Lee believes that next year will be even more bullish for the cryptocurrency. Lee predicted that bitcoin could skyrocket by more than 300% from this point in 2021, which will take the asset into a six-digit price territory.
Tom Lee Sees Massive Gains for BTC in 2021
Bitcoin entered the new century with a price level of about $7,200. Despite highly volatile periods, including a vigorous dip beneath $4,000 in the mid-March liquidity crisis, 2020 will remain in BTC’s history as one of the most bullish years to date.
More specifically, bitcoin skyrocketed by roughly 300% to a new all-time high price of $29,300. Tom Lee, a Managing Partner at Fundstrat Global Advisors, predicted in January 2020 that BTC will reach $27,000 in the next few months. Although his timeframe was a bit off, his price prediction became a reality and even exceeded his expectations.
In a recent CNBC interview, Lee ironically said that he should have provided a higher BTC price number. Nevertheless, he envisioned even more bullish developments for the cryptocurrency next year:
“I think that 2021 will be a lot like 2017, which means that bitcoin will do even better in 2021 than it did in 2020. So, something above 300%.”
With BTC sitting around $29,000 at of writing these lines, an additional 300% increase from this point would place the asset at nearly $120,000. Should that indeed occur, bitcoin’s market capitalization would surge to almost $2.3 billion. This means that the primary cryptocurrency would equal the world’s most valuable company’s market cap – Apple.
Weakening Dollar Pushes People To Bitcoin
Lee also touched upon the topic of the depreciating dollar. The world’s reserve currency has lost about 10% of its value against the Euro and the British Pound in the past few months.
As BTC is primarily denominated in the greenback, it means that the dollar’s decreasing value would ultimately benefit the cryptocurrency, Lee explained:
“The dollar’s weakness will make people think – how do you sort of keep a unit of sound money? A lot of people thought gold would be that store. I think it still has a reasonable basis for someone to be long on gold. But, I think for younger folk, and those who are from the digital generation, bitcoin is that digital asset that they want to hold as a store of value.”
The narrative that BTC is younger generations’ gold has been breached by several other individuals and institutions in the past. Those include the author of Rich Dad, Poor Dad, Robert Kiyosaki, and the giant US multinational banking organization – JPMorgan Chase & Co.
Featured Image Courtesy of Bloomberg