The greater than 20% sell-off in bitcoin this week should not be a shock to buyers conversant in the cryptocurrency, in line with Fundstrat’s Tom Lee.
In a tweet on Tuesday, Lee stated bitcoin is susceptible to corrections of 40%-50%, including that the sizable corrections are “a part of its DNA and its historical past.”
After topping out at greater than $58,000 over the weekend and eclipsing $1 trillion in market worth, bitcoin sold-off to a low of $45,000 on Tuesday amid risk-off sentiment amongst buyers as a consequence of considerations of rising rates of interest.
However the decline in bitcoin “does not change truthful worth” for the cryptocurrency, Lee stated earlier than reiterating his $100,000 price target. A surge in bitcoin to $100,000 would signify potential upside of 117% from Tuesday afternoon ranges.
Lee’s value goal for bitcoin is based on his view that 2021 represents the same setup to 2017 for the cryptocurrency: a parabolic rally following a halvening occasion. A halvening in bitcoin is when the reward for miners finishing issues on the bitcoin blockchain is reduce in half. Bitcoin accomplished a halvening occasion final 12 months.
“Seems on sale, proper?” Lee requested.