Thomas Lee – a Managing Partner at Fundstrat Global Advisors – believes that bitcoin and the market itself will skyrocket once the delta variant of COVID-19 passes its peak. He expects to see the primary cryptocurrency trading at around $100,000 by the end of this year.
COVID-19’s Decline Would Lead to BTC’s Rally
In a recent interview for CNBC, the American investor Tom Lee opined that not only bitcoin but the entire financial industry would recover and head towards new heights when the coronavirus infections start dwindling. Fundstrat’s founder went even further, predicting that the primary digital asset would reach a price of $100,000 at the end of 2021:
“A hundred thousand into year-end is pretty reasonable.”
According to the Institute for Health Metrics and Evaluation (IHME), COVID-19 cases in the USA will peak this week, which means that soon they will start decreasing. Furthermore, the health research center does not expect a renewed wave of cases in September or October:
“While the hysteria around the continued surge in delta variant infection continues to grow, the IHME (Institute for Health Metrics, forecasters used by global policymakers) forecasts USA COVID-19 infections to peak this week. What is also interesting is the IHME is not forecasting a fall surge.”
With that being said, Lee stated that in the upcoming months, the panic around the coronavirus infections among the population would significantly decline, leading to a fresh economic boom. He also argued that the industry would be in a “risk-on” atmosphere by the end of this year, which could also bolster numerous market assets, including bitcoin.
Tom Lee’s Previous Forecasts
Fundstrat’s Managing Partner seems to have a strict vision about bitcoin’s future price as last year he predicted that the asset would trade at $120,000 by the end of 2021. Back then, he opined that the ongoing year would be very similar to 2017:
“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%.”
By the time of saying this, the cryptocurrency was sitting at around $29,000, meaning that an additional 300% increase would result in the aforementioned $120,000.
According to Lee, though, bitcoin and the crypto market have to overcome its volatility and stop fluctuating hard after comments from prominent individuals such as Elon Musk.
“Just a personal observation, but the fact crypto and bitcoin prices respond to actions by a company or individual show this market still needs to evolve further,” he stated.
Featured Image Courtesy of CNBC