Why Fundstrat's Tom Lee Says Bitcoin Could Still Reach $100K In 2021

Benzinga2021-05-25

Hypervolatility in cryptocurrencies creates opportunity and reward, Fundstrat's Tom Lee said Monday on CNBC's "TechCheck."

Volatility inBitcoin(CRYPTO: BTC) is systematic to the network itself, Lee said.

Much of the recent volatility came from institutional traders on the short side of the Bitcoin trade, he said, adding that he believes many of those traders covered their short positions — explaining the quick rise in Bitcoin this week.

What Happened: Recently, the cryptocurrency space underwent extreme volatility as Bitcoin and other popular cryptocurrencies sold off more than 50% from all-time highs before bouncing.

Although digital money is a new concept, the idea is logical in a digital economy, Lee said.

He told CNBC that he believes Bitcoin could still reach $100,000 by the end of 2021.

Price Action: Although Bitcoin has fallen dramatically from its recent highs, the cryptocurrency is still up 30.15% year-to-date.

At last check Monday, Bitcoin was up 15.32% at $39,017.78.

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