Tom Lee, the co-founder and head of research at Fundstrat Global Advisors is feeling very bullish about cryptocurrency bitcoin this year.
He believes that bitcoin’s rally could keep going this year and that the digital currency could double.
This is the same man who predicted that bitcoin would head over $10,000. It was last year that bitcoin hit as high as $19,800 in December.
The cryptocurrency has shed 25% since then but is still up tremendously.
Lee said on Tuesday on CNBC’s “Futures Now,” “Even on a risk-adjusted basis, I think bitcoin is going to easily outperform the S&P.”
“On a long-term basis, [the easiest way to look at bitcoin is] as a replacement or a store of value,” he said. “So as millennials discover and generate income, they’re going to use it as a replacement for gold.”
“If [bitcoin] gets 5 percent of the gold market, that’s roughly $50,000,” Lee also said.
He predicted, “We think that by mid-2018, we’re going to be part of the way there, and that’s why we get [bitcoin to $20,000]. If [bitcoin] can actually rise close to [that $20,000 level] in the first half of this year, I think in the second half of 2018, we’ll see a move bigger than that,” Lee said. “So I think bitcoin is still something you should own [all year].”