$100,000 “Pretty Reasonable” Year-End Target for Bitcoin: Fundstrat’s Tom Lee

Tom Lee Predicts Bitcoin Rally at the End of 2021, Points at Major Buy Signal

In a recent interview on CNBC, Tom Lee said that the stock markets would be headed for a significant upswing at the end of 2021, triggered in part by declining delta variant cases. Under these conditions, Bitcoin would likely hit $100k due to an “everything rally.”

Bitcoin broke $46,000 on Monday after fluctuating in the $40,000-$45,000 range for some days. In doing so, the pioneer cryptocurrency breached its 200-day moving average ($44, 982).

Lee opines that the 200-day MA could be an ideal price level for further Bitcoin accumulation as the average gain is nearly 180 percent. To explain this investment advice, Lee cited Fundstrat’s third rule for crypto purchases:

Declining Covid Cases to Embolden Investors and Revive Asset Markets

In a company research note published on Monday, Lee asserted that the IHME (Institute of Health Metrics) predicts covid-19 cases would peak this week. He added:

As case numbers drop, the equity and cryptocurrency markets will rebound from losses and experience a “relief rally”, which Lee thinks would drive Bitcoin to his projected price level. 

The analyst also pointed out that Bitcoin has managed to survive continued regulatory and legislative onslaughts in both the United States and China. 

Bitcoin and other cryptocurrencies have shown no signs of being affected by crypto taxation provisions proposed in the American infrastructure bill until now. On Monday, former Republican presidential candidate and Texas Senator Ted Cruz tweeted that the crypto industry “got screwed” by the US Senate, while adding that the language used in the proposed legislation would “inflict billions of dollars of damage” on the nascent industry.