Tom Lee, managing partner at Fundstrat Global Advisors, forecasted that the Bitcoin price will hit $200,000 in 2022 at a webinar hosted by investing education platform Market Rebellion.
While the renowned market researcher feels that the cryptocurrency’s returns were underwhelming in 2021, he believes that the crypto king would beat the market following year. Additionally, the permabull anticipates a blockbuster year for bitcoin stocks in 2022.
The year that Bitcoin had an unimpressive performance
On Nov. 10, bitcoin climbed to its current all-time high of $69,044 before suffering a steep decline. The cryptocurrency fell short of the year-end spike that many bulls anticipated. It is presently trading at $51,067, having recovered some previous losses.
Despite a strong start to the year, Bitcoin saw a significant drop in the second quarter. It was precipitated by environmental worries about the proof-of-work consensus mechanism and China’s severe cryptocurrency prohibition.
The Bulls’ inability to maintain pace in November dashed aspirations of attaining Lee’s oft-repeated $100,000 objective before year’s end. Lee is sometimes referred to as a permabull by critics due to his excessively optimistic forecasts.
This critique is not without merit: Fundstrat abandoned attempts to anticipate Bitcoin’s price movement in December 2018 after many poor forecasts by Lee on the eve of the harsh bear market, which became a source of ridicule in the financial world.
Lee earned a reprieve last year when he correctly predicted a quick stock market comeback after the pandemic-related slump. The expert anticipates that the S&P 500 index will end the year over 5,100.
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