If the world went the way Tom Lee thinks it, Bitcoin could be $ 100,000 by the end of 2021. How did he get it?
Thomas Lee, Head of Research and Partner at Fundstrat Global Advisors, affirmed his theory of the “everything rally” in an interview with CNBC on August 19. He assumes that the financial markets will start a new bull run after Corona. And this wave of relief, about the end of Corona, would ultimately also capture Bitcoin and carry it above the magical mark of 100,000 US dollars. In addition, Bitcoin rose above the 200-day line in August, which is a popular price indicator among traders and is seen as a buy signal.
Thomas Lee expects an “everything rally” that also affects Bitcoin
The corona crisis was a real acid test for people around the world. Therefore, the prospect of an end to the pandemic, when Corona is finally over and everything is largely “normal” again, could lead to a kind of “liberation investment wave” among investors that affects all markets. This rally would ultimately also capture Bitcoin and other crypto currencies and carry them upwards. Should the rally lead to the all-time high of Bitcoin, which was only marked this year, being cracked, this in turn could turn into a “FOMO” event for Bitcoin. It is also a bullish sign for Tom Lee that Bitcoin crossed the 200-day line on August 9, 2021. Perhaps one of the reasons why he likes this trading indicator so much is because it has served him well in the past.
Because with his latest assessment, the “Permabulle” Lee remains true to his line. Already in 2020 he tweeted optimistically that there was only one way for the Bitcoin course in the long term: north. At that time, Bitcoin also crossed the important 200-day line and Tom Lee was thinking aloud about an increase to $ 26,000. While Tom Lee still needs a little practice in timing his forecasts correctly, Bitcoin actually surged to over $ 26,000 in the course of 2020.
Crash and boom prophets have been around for as long as markets have existed. Tom Lee belongs to the latter, and since last year he has been forecasting a price increase for Bitcoin up to 100,000 US dollars. With every reason to be optimistic, one thing must not be forgotten: It is always important to think about the topic yourself and to develop your own trading strategy. DYOR is the motto.