Tom Lee, the founder and head of research at FundStrat Global Advisors, has reiterated his optimistic outlook for Bitcoin (BTC) during a recent interview with CNBC.
Lee projects a remarkable upswing for Bitcoin, suggesting a potential surge to an impressive $150,000 within the next 12 to 18 months. This forecast implies a substantial 117% increase from its current value, with Bitcoin’s perceived role as a hedge against fiscal instability contributing to the bullish sentiment.
In the interview, Lee highlighted three key factors supporting his positive forecast. Firstly, he emphasized the growing demand for a spot exchange-traded fund (ETF), citing it as a primary driver. Lee believes that the influx of investments into spot Bitcoin ETFs, coupled with the upcoming Bitcoin halving event, creates a favorable environment for the cryptocurrency’s value to rise. The halving event is expected to reduce Bitcoin’s new supply.
Lee specifically pointed to the significant increase in inflows into spot Bitcoin ETFs, such as BlackRock’s, which recently experienced a nearly $800 million boost. According to him, this demand surge, combined with the supply reduction due to halving, as well as anticipated monetary policy easing, is likely to support risk assets. Notably, these ETFs now boast over $28 billion in assets, surpassing the assets in the Grayscale Bitcoin Trust ETF (GBTC), indicating robust institutional interest in Bitcoin.
Addressing the supply-demand dynamics, especially in anticipation of the Bitcoin halving event, Lee highlighted the potential for exacerbating this imbalance in favor of price surges.
On the regulatory front, Lee expressed optimism, suggesting that Bitcoin may have already overcome the toughest phase of regulatory challenges in the past 18 months. He argued that given the intensity of regulatory actions in the crypto space during this period, further challenges for Bitcoin are unlikely to intensify, from his perspective.
This bullish forecast comes amid a period of slight consolidation for Bitcoin, following its recent all-time high of $70,083 on March 8. Despite a minor dip below the $68,300 threshold, Bitcoin has demonstrated resilience. At the time of writing, the cryptocurrency’s price was up 1.5% over the past 24 hours, trading at $69,308, according to data from CoinGecko. Despite a nearly 39% dip in trading volume over that period, ending the day at $31,576,168,688, Lee’s insights into Bitcoin’s potential trajectory offer an optimistic outlook for bullish investors in the dynamic world of cryptocurrency.
