Next price bitcoin - remarkable, the
Bitcoin could quadruple in as the digital currency sees a rally similar to , Fundstrat's Tom Lee says
- Bitcoin's near % surge in could be followed up by an even stronger performance in , according to Fundstrat's Tom Lee.
- In an interview with CNBC on Wednesday, Lee said bitcoin could quadruple in as the crypto asset experiences a similar parabolic setup that occurred in
- " is going to be a lot like which means bitcoin should do even better in than it did in , so something above %," Lee told CNBC.
- Visit Business Insider's homepage for more stories.
Following a strong that saw bitcoin march to all time highs for a gain of around %, could be even stronger.
That's according to Fundstrat's Tom Lee, who said in an interview with CNBC on Wednesday that he sees bitcoin surging another % next year.
At its current price of about $29,, a quadruple in bitcoin would put the crypto asset well above the $, mark at $,
Driving bitcoin higher would be a similar setup to what was seen in a parabolic rally. Lee tweeted that the halvening of makes this year most similar to , which also experienced a halvening. A halvening in bitcoin is when the reward for miners completing problems on the bitcoin blockchain is cut in half.
Read more:GOLDMAN SACHS: Buy these 37 stocks that could earn you the strongest returns without taking on big risks in as the recovery and vaccine distribution get underway
will be most like in that bitcoin will likely experience a "parabolic rise," Lee tweeted.
Fundstrat's digital asset strategist David Grider also raised his outlook for bitcoin in a note on Wednesday, expecting the crypto asset to hit at least $40, next year.
"We believe the conditions remain in place for a continued rally in bitcoin and crypto more broadly over the next months. Institutional and corporate buying, regulatory de-risking and retail stimulus demand are factors that have led to an increase in positive momentum, which we believe can continue," Grider said.
But if the stock market corrects next year, the positive outlook for bitcoin may deteriorate, according to Lee.
"Bitcoin acts like a risk on asset, so in the years where the S&P performs the best are also the best years for bitcoin. So I think if we have a correction in stocks then bitcoin is going to fall," Lee explained.
Read more: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.
-