David Grider, Director of Digital Asset Strategy at Fundstrat Global Advisors, has raised his six to twelve month price target for Bitcoin to $40,000. However, Tom Lee expects the Bitcoin price to be much higher than that in 2021.
According to a report published by Barron’s on Wednesday (December 30), Grider wrote in a note to clients:
“Conditions are in place for a continued rally in cryptocurrency prices over the course of the next year… We remain bullish and are raising our Bitcoin price target from $25,000 to $40,000, while again noting that we recommend investors seeking to add exposure should favor pull backs given the recent run and corresponding higher valuations.””
Yesterday, Melissa Lee, host of CNBC’s “Fast Money” asked Thomas Lee, Co-Founder, Managing Partner and the Head of Research at Fundstrat, what he thought about Grider’s price forecast for Bitcoin and whether he wished Fundstrat had put out a higher number.
“That number came from David Grider… but I think in rounder numbers, 2021 is gonna be a lot like 2017, which means Bitcoin should do even better in 2021 than it did in 2020, so something above 300%.“
He later added:
“Bitcoin it’s going to be denominated in something, so if the dollar’s weakening, but Bitcoin holds its value, then Bitcoin goes up, but the more important effect is, this year, we did see a lot of central bank liquidity. The dollar was really strong — surprisingly for much of the year — but it’s weakness now really is going to make people think how do you sort of keep something unit and sound money. A lot of people thought gold would be that store… but I think for younger folks and those who are the digital generation, Bitcoin is that digital asset that they want to hold as a store value.“
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.