How Bitcoin Could Hit $200K This Year

On Valentine’s Day, Tom Lee, the Cofounder of Fundstrat Global Advisor explained the two factors that could puh Bitcoin to $200,000 this year.

Appearing on CNBC’s Crypto World, Lee said, “”The simplest way to see a big step-function occur in crypto, is getting existing investors in the U.S., not new investors, to allocate to Bitcoin.

“Seventy six percent of the wealth in America is controlled by people over the age of 65. That’s nearly $100 trillion held by people that think Bitcoin is a hobby or things that people live in the basement play with.

“I think regulation could unlock a lot of that movement. Just imagine if 2% out of $100 trillion allocated to crypto, you could see a five-to-10, 15 times increase in total network value.”

Currently, Bitcoin is trading near a 40% discount from its peak, with over 90% of all coins already mined. It’s estimated that the remaining supply of Bitcoin will not be mined-out until 2040.

This means Bitcoin hosting and mining companies have nearly two decades of work ahead of them.

Notably, the supply of Bitcoin circulation right now is at three-year lows. Investors have been holding, rather than selling or actively trading. The historical performance of Bitcoin may be the reason why.

Over the last decade, Bitcoin has outperformed every investment class, returning an average of over 230% annually.

While historical returns have been outstanding, a 230% return this year could mean Bitcoin finishes close to $156,000. However, the average price-peak for 2022, predicted by 33 fintech specialists, is $93,717, which is still more than double its current price.

Read more about Tom Lee’s Bitcoin prediction, HERE