The Managing Partner at Fundstrat Global Advisors – Tom Lee – forecasted that bitcoin’s USD value could surge to $200K in the following years. In his view, many US investors will stop dealing with bonds and change their strategy towards the cryptocurrency market.
Bitcoin’s Path Towards $200K
The Wall Street strategist Thomas Lee is known for his bullish bitcoin predictions. Five years ago, his company Fundstrat published its first report on BTC, envisioning that the asset will be worth between $15,000 and $50,000 by 2022.
However, not all of his forecasts came true. Last year, he said, “a hundred thousand into year-end is pretty reasonable.” Bitcoin finished 2021 at about $46,000, disappointing many experts who predicted it would indeed hit the $100K milestone.
During his most recent interview for CNBC, Lee outlined an even more optimistic future for the leading digital asset. He argued that the interest rates will cause bonds owners to lose money in the future. As such, many American investors will allocate their capital into alternative assets such as cryptocurrencies, and that could fuel bitcoin’s price to $200,000:
“Interest rates look like they’re set to reverse almost 30 years of declines. That means for the next ten years, you’re guaranteed to lose money owning bonds… It’s really going to be tracing its roots to a rotation out of bonds, and it’s going to eventually flow into crypto.”
Additionally, Lee pointed out the biggest downsides for the primary digital asset. The cryptographic hash becoming “exposed” and the cost of global energy falling to zero are the most significant risk factors for BTC, he said.
JPMorgan With a Long-Term Prediction of $150K
Last week, the Wall Street investment bank – JPMorgan & Chase – forecasted that bitcoin could hit $150,000 in the years to come. Previously, the financial institution suggested the long-term price for BTC was $146,000.
Nikolaos Panigirtzoglou – Managing Director at JPMorgan – also touched upon the current valuation of the cryptocurrency. He thinks its “fair value” should be around $38,000, basing it on the assumption that BTC is nearly four times more volatile than gold.
However, if the price fluctuations narrowed to three times, the “fair price” could increase to approximately $50,000.
“The biggest challenge for Bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption,” Panigirtzoglou concluded.