Fundstrat’s Tom Lee says, Bitcoin could easily double in 2018

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Bitcoin Price Prediction

Fundstrat‘s CEO, one of the biggest investors in bitcoin, Tom Lee said that Bitcoin could “easily double” or even triple in 2018.

In August 2017, the investor predicted the bitcoin’s rally above $10,000 and declared that the cryptocurrency would beat equities through the end of the year. Yes, of course, bitcoin grew to a high near $19,800 in December, according to Coindelite’s Price Chart. After the high, however, the digital currency has fallen 25 percent.

Despite the drop, Lee is still beating the table on the cryptocurrency.

Lee said to CNBC on Tuesday:

“Even on a risk-adjusted basis, I think bitcoin is going to easily outperform the S&P, on a long-term basis, [the easiest way to look at bitcoin is] as a replacement or a store of value. So as millennials discover and generate income, they’re going to use it as a replacement for gold.”

Investors have disregarded that the bitcoin boom could be taking market share from gold. Over the last year as bitcoin grew about 1,535 percent, gold has been tethered around the $1,300 level.

He included that, if bitcoin gets 5% of the gold market, that would be around $50,000 which is more than 200 percent more from the bitcoin’s current trading price.

Depending on the near duration, Lee hopes that bitcoin would reclaim the December’s high. He thinks that by mid-2018, we are going to be part of the way there, and that’s why we get bitcoin to $20,000. If bitcoin could actually grow closer 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, he thinks bitcoin is still something we should own always.

In November 2017, Lee had also discussed the bitcoin’s price prediction since it had grown 40% more at that time.

Despite its low performance in the last month, bitcoin is still up to 15 percent from the first few days of 2018.