Bitcoin Price Prediction: BTC Could 'Quadruple' In 2021, Fundstrat Exec Says

With Bitcoin now positioned above $30,000, many analysts are expecting further upside. One expert expects the dominant cryptocurrency to rally all the way to $100,000 this year.

In an interview with CNBC, Tom Lee, managing partner and head of research at Fundstrat Global Advisors, said the price of Bitcoin could quadruple this year. This means from the current price of $33,000, Lee is predicting a future figure of $132,000.

Lee said the prediction is based on the price setup observed in 2016 and 2017. In 2016, Bitcoin experienced the third halving, a technical event that cut the supply of Bitcoin's daily issuance in half. The cryptocurrency approached $20,000 in December 2017.

Similarly, since Bitcoin experienced the fourth halving in May 2020, a parabolic bull run is expected to happen in 2021.

According to David Grider, Fundstrat's digital asset strategist, the conditions are in place for a sustained rally. "Institutional and corporate buying, regulatory de-risking, and retail stimulus demand are factors that have led to an increase in positive momentum, which we believe can continue," Grider noted.

Bitcoin briefly went above $34,000 before closing Sunday at $33,080, its new all-time high after a remarkable rally that started when Bitcoin crashed to below $4,000 in March last year. 2020 saw a number of institutional investors, like MassMutual, and public companies, like Square and MicroStrategy, openly saying that they had put a portion of their funds into Bitcoin.

Square's $50 million investment into Bitcoin, which was made last October, was worth $100 million as of Saturday.

Lee warned that a stock market correction could mean bad for Bitcoin. Since Bitcoin is like a "Risk on asset," the best period for Bitcoin is always when the S&P performs well. "So I think if we have a correction in stocks then Bitcoin is going to fall," Lee said.