The more than 20% sell-off in bitcoin this week shouldn't be a surprise to investors familiar with the cryptocurrency, according to Fundstrat's Tom Lee.
In a tweet on Tuesday, Lee said bitcoin is prone to corrections of 40%-50%, adding that the sizable corrections are "part of its DNA and its history."
But the decline in bitcoin "doesn't change fair value" for the cryptocurrency, Lee said before reiterating his $100,000 price target. A surge in bitcoin to $100,000 would represent potential upside of 117% from Tuesday afternoon levels.
Lee's price target for bitcoin is predicated on his view that 2021 represents a similar setup to 2017 for the cryptocurrency: a parabolic rally following a halvening event. A halvening in bitcoin is when the reward for miners completing problems on the bitcoin blockchain is cut in half. Bitcoin completed a halvening event last year.
AMC extends 2-day rally to 36% with NYC movie theaters set for partial reopening in March
EVs and clean tech are bubbles that will deflate as economic recovery prompts rethinking of 'aspirational' sectors, says JPMorgan
JPMorgan and Citi are using blockchain technology, and other banks are considering allowing clients to hold crypto in bank accounts, Bank of America research finds
Next Story
Bihar has no governance, state budget a bundle of lies : Tejashwi in assembly
Next