Tom Lee, Fundstrat Global Advisors co-founder, has put forth a bullish prediction regarding Bitcoin’s (BTC) near-term price action on CNBC’s Squawk Box on April 21.
Namely, the financial analyst believes that the leading digital asset struggled at the beginning of the year due to the overleveraged positions of institutional investors.
“Now that deleveraging is done, I think that Bitcoin is gonna catch up to gold. And Bitcoin’s old high was over $110,000, so I think there’s a lot of room to catch up as a sort of non-dollar asset.”
At the time of writing on April 21, Bitcoin was trading at $88,210, having marked a 4.43% gain on the daily chart, which has brought year-to-date (YTD) losses down to 5.67%.
Here’s how much Bitcoin would have to rally to catch up to gold
In contrast with the leading cryptocurrency, gold prices have increased by 30.31% since the start of the year, having reached $3,420 per ounce by press time.
Accordingly, BTC would have to see a 36.61% surge from current levels in order to catch up to gold. In absolute terms, this amounts to a rally to $120,507 — some 13.49% higher than the digital asset’s all-time high (ATH of $106,180, reached on January 22.
However, readers should note that Lee’s optimism could be unfounded — the analyst had previously predicted a stock market recovery in late February, which failed to materialize. Moreover, in September of 2024, Lee missed the mark when he predicted a 7% to 10% pullback in the S&P 500.
With that being said, Lee maintains a generally strong track record in terms of predictions, and has set a $250,000 price target for Bitcoin by the end of 2025.
Watch the full video here:
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