Bitcoinâ€™s price hit a record Wednesday. A strategist at Fundstrat sees even more upside from current levels in the next six to 12 months.
The cryptocurrency touched $28,871.87 earlier Wednesday, its highest level on record, according to Dow Jones Market Data. It has since pulled back a touch to $28,819.92, up 7.3% from its levels at 5 p.m. on Tuesday. Bitcoin has soared more than 493% from its 2020 bottom around $4,857 on March 12.
David Grider, lead digital strategist at Fundstrat, said Bitcoinâ€™s positive momentum is being fueled by institutions and corporations purchasing more of the asset and retail demand driven by the latest wave of stimulus checks, among other factors. He raised his six- to- 12-month target on Bitcoin to $40,000, up from his prior target of $25,000.
â€œConditions are in place for a continued rally in cryptocurrency prices over the course of the next year,â€� Grider wrote. â€œWe remain bullish and are raising our Bitcoin price target from $25,000 to $40,000, while again noting that we recommend investors seeking to add exposure should favor pull backs given the recent run and corresponding higher valuations.â€�
Given the recent run, some might look to take profits, Grider noted, which could slow or reverse the rally. Other bumps may be ahead, such as potential regulatory actions and other new cryptocurrencies.
â€œWe wouldnâ€™t view these events as long-term negatives for Bitcoin, but if such events unfold, they may negatively impact broader market sentiment and prices,â€� Grider added.
While Bitcoin certainly has its skeptics, others have also raised their price targets for the cryptocurrency. Citing similar catalysts, ARK Investment Management CEO Catherine Wood in November said that Bitcoin prices could eventually climb to $500,000.
Strategists have turned positive on the asset, too. Jim Paulsen, chief investment strategist of Leuthold Group, told clients last month that Bitcoin could be a way to balance their portfolios. As Barronâ€™s noted earlier this month, there are numerous ways to invest in Bitcoin, so long as you watch out for fees.
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