Thomas Lee, Co-Founder, Managing Partner and the Head of Research at independent research boutique Fundstrat Global Advisors, has suggested that as investors move away from bonds they may rotate to the cryptocurrency sector, which would help BTC’s price explode to $200,000.
During an interview with CNBC, Lee noted that interest rates are seemingly “set to reverse almost 30 years of declines” and are now “probably flat or rising,” which to him means that for the next decade investors are “guaranteed to lose money owning bonds.”
According to Lee, almost $60 trillion worth of wealth are going to move away from bonds to search for new opportunities to earn yield. He added:
The obvious thing is going to be rotating into stocks, like FAANG. Maybe it goes into crypto because you can generate yield, through yield farming or lending. What I think is more likely is a lot of speculative capital from equities flows into crypto.
During the interview, Lee also analyzed Bitcoin’s potential downside. The analyst noted that someone being able to undermine its underlying Proof-of-Work (PoW) process could destroy bitcoin’s legitimacy. On top of that, if the cost of global energy drops to zero, BTC could be at risk, as it would make it easier for malicious actors to launch a 51% attack on it.
Tom Lee, it’s worth noting, is a well-known bitcoin bull who has been predicting the price of bitcoin will hit $200,000 for some time. Late last year, Lee said he could see BTC at $200,000 in this year. During the 2018 bear market, Lee noted that the market was wrong about BTC’s value.
As CryptoGlobe reported, other analysts are also bullish on BTC in the long run. Strategists at JPMorgan Chase led by Nikolaos Panigirtzoglou have revealed they see Bitcoin’s current “fair value” at around $38,000, roughly 12% below its current price, while their theoretical BTC price target is at $150,000.
In a report published by Fidelity Digital Assets, the multinational brokerage giant has argued that Bitcoin is a “superior form of money” that could be the “primary monetary good” and that its technological breakthrough was based on that superiority, and not as a superior payment technology.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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