Fundstrat Global Advisors’ co-founder and head of research Tom Lee believes that Bitcoin (BTC) could easily outperform the S&P 500 this year.
During an appearance on CNBC's TV programme "Futures Now", Lee, who is one of the most prominent Bitcoin supporters on Wall Street, said forecast that the original cryptocurrency would reach its December highs of around $20,000 by mid-2018. If that happens, Lee said he could see Bitcoin making an even bigger move in the second half of the year.
"Even on a risk-adjusted basis, I think bitcoin is going to easily outperform the S&P," Lee said yesterday, as quoted by CNBC. "On a long-term basis, [the easiest way to look at bitcoin is] as a replacement or a store of value," he said. "So as millennials discover and generate income, they're going to use it as a replacement for gold."
"If [bitcoin] gets 5 percent of the gold market, that's roughly $50,000," he added.
Las year Lee made several bullish predictions about Bitcoin. In August, when the Bitcoin price was around $3,500, the analyst said that the cryptocurrency would likely be the best performing asset through the rest of the year.
In today’s trading, the Bitcoin price stood at $14,116.30, as of 13:27 GMT. The digital coin has lost 4.35% of its value in the past 24 hours, according to data from cryptocurrency tracker Coinmarketcap. Its market capitalisation currently stands at $237 billion, which represents a third of the total value of the cryptocurrency market.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.