Lee from Fundstrat is sure that the price of bitcoin will double by the end of this year, and in the long run may exceed $ 1 million, even reaching $ 3 million per coin.
In a recent interview with Squawk Box on the CNBC channel, Lee emphasized that Bitcoin “reacts to global liquidity that is currently growing” because the markets are expected to reduce bets in the coming months.
The growth of cryptocurrency continues to be ahead of the growth of traditional assets, while institutional investors are increasingly considering bitcoin as digital gold, which deserves a higher rating compared to physical precious metals.
In this regard, the top manager Fundstrat, Tom Lee presented an extremely bold forecast for bitcoin with a level of $ 2.5-3 million in the long term.
Whether mathematical calculations are quite convincing. The cost of gold is currently about $ 20 trillion, while the market capitalization of bitcoin is approximately $ 2 trillion. If Bitcoin captures at least a small part of the share of gold in the market, then the numbers will begin to align.
Whether the position is largely based on the BitWise study, which revealed a critical imbalance of supply and demand. Despite the production of 95% of bitcoins, only about 5% of the world’s population actually own this cryptocurrency.
This dynamics of the deficit creates what it calls the exponential growth potential as mass implementation accelerates. Since almost all bitcoins are already in circulation, and the level of global distribution is minimal, conditions are created for a significant increase in price, since demand exceeds the supply.
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Source: Cryptocurrency
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