Fundstrat’s Tom Lee has explained why he sees Bitcoin hitting $200,000
During a recent interview with CNBC Crypto World, Fundstrat’s Tom Lee doubled his price target of $200,000.
The total U.S. household net worth currently stands at $141.7 trillion, and people are guaranteed to lose money owning bonds over the next ten years, Lee says.
Therefore, the analyst expects a lot of hot money to flow into the crypto:
That could be huge.
Lee says crypto is interesting because every transaction is traceable. He also points to the fact that digital cash is “much easier” to manage and move around, making it a viable payment option. However, the analyst sees the high price of Bitcoin as a barrier to adoption, which is why he believes the industry could benefit from pricing in satoshis.
Fundstrat’s foray into cryptocurrencies was mostly met with skepticism and ridicule, according to Lee.
However, most of the firm’s clients have started to see crypto as a legit asset class now that it’s proven itself.
Lee “definitely” thinks that another dominant cryptocurrency could emerge within the next ten years, but he concedes that barely anyone has a sufficient level of conviction to make any concrete predictions about the next decade:
Unless someone has a crystal ball, it is very difficult to be accurate in crypto.
As reported by U.Today, Lee predicted that the largest cryptocurrency would surpass $100,000, but the cryptocurrency peaked at $69,000 before plunging lower. The analyst has faced plenty of criticism because of his failed forecasts.
In his latest interview, the Fundstrat boss emphasized that people shouldn’t allocate an unhealthy amount of crypto to their wallets.
The cost of global energy falling to zero or the cryptographic hash becoming “exposed” are seen as the biggest risk factors for Bitcoin.