Fundstrat co-founder Tom Lee, in an interview with CNBC, named $200,000 a target for Bitcoin and explained what could drive its attainment.
According to the analyst, aggregate US household net worth exceeds $141 trillion. Monetary policy of the Fed leads to people almost certainly losing money on bond investments over the coming decade.
Thus, Lee expects a surge of speculative capital into cryptocurrency, which could be “enormous”.
He also noted that digital money is far easier to manage and move. Another feature is the transparency and traceability of transactions.
In his view, Bitcoin’s high price is a barrier to mass adoption of the asset. Therefore, he supported the idea of moving to satoshis — a millionth of a coin.
When it comes to price forecasts for the cryptocurrency, the analyst stressed that few have enough conviction to make specific predictions for the next decade.
“If you don’t have a crystal ball, it’s very hard to be precise in crypto,” he joked.
Lee recalled the skepticism with which Fundstrat’s entry into the crypto industry was greeted. However today most of the firm’s clients view digital money as a legitimate asset class.
The analyst noted that cryptocurrencies should constitute a “reasonable” portion of an investment portfolio.
In February, FSInsight, the firm founded by Tom Lee, predicted that the first cryptocurrency would reach the $200,000 mark in the second half of 2022.