Wall Street strategist Tom Lee told CNBC on Monday that the Bitcoin collapse last week hadn’t shaken his bullish resolve. He stands by his price target of USD 100,000 per token by the end of the year.
“I think Bitcoin is very volatile. That’s the nature of it, but that creates the reward for people,” Lee said in an interview on TechCheck.
“Even with Bitcoin in the box now, I still think it could finish over $ 100,000 in the year,” said Lee, co-founder and head of research at Fundstrat Global Advisors.
Lee told CNBC that he first offered the year-end bitcoin target in December – and he’s not backing down, even though the world’s largest cryptocurrency has struggled since hitting an all-time high near $ 65,000 in mid-April.
Bitcoin has had a particularly volatile period in the past few days, including last Wednesday’s session where at one point it had dropped more than 30% to just over $ 30,000 per token. It recovered some losses and was back over $ 40,000 apiece on Thursday and Friday at times. However, over the weekend, Bitcoin resold, dropping below $ 32,000 apiece.
The rally was back on Monday. Bitcoin rose 12% and traded over $ 37,000.
“Bitcoin volatility is systematic to the network itself. I think anyone who buys Bitcoin needs to be aware that it will always be hypervolatile. This is the opportunity,” Lee said.
Headwinds Bitcoin has faced lately have included comments from Elon Musk, CEO of Tesla, and regulatory concerns in China and the United States. Some strategists also see that the extent of the withdrawal is related to an increase in leverage in the crypto markets.
“This is essentially a wake-up call” for investors who got into Bitcoin when there was a big uptrend, Lee said. “If you look at where the sale is taking place, it’s not from the original Bitcoin holders, but from many new accounts.”