Whenever bitcoin shows something positive, the permabulls wake up again. During a Market Rebellion webinar, Tom Lee, managing partner at Fundstrat Global Advisors, predicted that the bitcoin price in 2022 could rise to 200,000 dollars (175,000 euros).
2021 was disappointing
While the market analyst believes bitcoin’s returns were disappointing in 2021, he expects the cryptocurrency to outperform next year. Tom Lee is the ultimate permabull, because who would find an 87% increase since the beginning of 2021 disappointing?
Tom Lee is disappointed in #Bitcoin this year but says 2022 should be a good year for the cryptocurrency
— Market Rebellion (@MarketRebels) December 23, 2021
Bitcoin could be worth $200,000 in 2022, but he also expects stocks that do something with crypto to have a good year.
Expectations too high
Perhaps his disappointment stems from the fact that bitcoin simply failed to live up to its expectations. After all, he often said that bitcoin could easily reach $100,000 this year. It looked like that for a while, when bitcoin was worth $69 thousand on November 10 and the way up turned out to be just a formality. But as is often the case, the number 69 is a kind of reversal.
A sharp correction soon followed.
Christmas rally possible
While bitcoin failed to hit new all-time highs in December, there could be another christmas rally worry. There are several patterns visible on the charts that are reminiscent of times gone by, which led to a significant increase at the time.
Despite starting the year well, bitcoin experienced a major crash in the second quarter. This was triggered by climate concerns surrounding the proof-of-work consensus algorithm and China’s draconian cryptocurrency ban.
Criticism of Lee
Lee is often dismissed as a permabull by opponents for his over-optimistic predictions.
This criticism is not unfounded: In December 2018, Fundstrat threw in the towel when it comes to predictions after being wrong so often. At the end of the 2017 bull run, they continued to shout high numbers, but the relentless bear market made them the laughing stock of the investment world.
Last year, however, Lee was right, so he has some right to speak again. He predicted that the stock market would recover quickly after everything came crashing down at the start of Corona.
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