A noted stock market bull, Fundstrat’s Tom Lee, believes the bitcoin price could “easily” double in 2018 outperforming equities [in the process] even though the flagship cryptocurrency’s breakneck rally has ebbed in recent weeks.
The original article by Josiah Wilmoth has been edited here for length (…) and clarity ([ ]) by munKNEE.com to provide a fast & easy read.
“On a long-term basis, [the easiest way to look at bitcoin is] as a replacement or a store of value,” says Lee, “so, as millennials discover and generate income, they’re going to consider using it as a replacement for gold.”
That’s a bold stance. Lee has predicted that the S&P 500 could reach 3,025 by the end of the year, up more than 12% from where it entered January…
The Road to $50,000
Fundstrat believes bitcoin will continue to exhibit strong fundamentals, namely:
- a growing user base
- and a steady uptick in transaction volume.
These factors, Lee has said in the past, account for the bulk of bitcoin’s 2017 price rally and make the firm bullish on its outlook moving forward.
“We think that by mid-2018, we’re going to be part of the way there, and that’s why we get [bitcoin to $20,000],” Lee said. “If [bitcoin] can actually rise close to [that $20,000 level] in the first half of this year, I think in the second half of 2018, we’ll see a move bigger than that, so I think bitcoin is still something you should own [all year]. Indeed, if [bitcoin] gets [just] 5% of the gold market, that’s roughly $50,000.”
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