Fundstrat’s Tom Lee Foresees 200% Increase for Bitcoin in 2018

Despite its underwhelming performance of late, Tom Lee’s faith in Bitcoin’s potential remains unshaken. The co-founder and head of research at Fundstrat Global Advisors has predicted that the cryptocurrency will see new highs during the current year.

Speaking to CNBC, Lee stated that Bitcoin could “easily double”, and maybe even triple, this year. This is the latest in a series of predictions Lee has made for Bitcoin. In August last year, Lee accurately predicted Bitcoin’s rise above $10,000 and claimed that it would overtake equities by the end of 2017.

The cryptocurrency broke past the $20,000 barrier in December last year, but since then, has been trapped in a downward spiral, having fallen approximately 25% while stocks have risen by 3%. Despite this, however, Lee thinks Bitcoin is still poised to outpace stocks.

“Even on a risk-adjusted basis, I think Bitcoin is going to easily outperform the S&P.”

He went on to reiterate his previous view that Bitcoin is “digital gold” for millennials, who will take the digital currency ahead in the same way baby boomers drove the stock market forward.

“On a long-term basis, [Bitcoin should be viewed] 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.”

Meanwhile, on a more short-term basis, Lee expects Bitcoin to recover the $20,000 high it attained in December last year by mid-2018, and move on to higher targets during the second half of the current year.

“I think Bitcoin is still something you should own,” he affirmed.