Key Points
Tom Lee’s Bitcoin Prediction
Tom Lee, the head of research at Fundstrat Global Advisors, has projected that Bitcoin (BTC) could hit $150,000 in 2024.
Bitcoin has been trading around $51,000 recently.
Lee’s prediction is based on several factors.
In an interview with CNBC, Lee highlighted the growing demand for Bitcoin.
This demand is partly driven by the introduction of new ETFs in the market.
Impact of Bitcoin Spot ETFs
The US Securities and Exchange Commission (SEC) approved 11 new Bitcoin spot ETFs on January 10.
These ETFs are owned by large asset managers like Grayscale Investments, Fidelity, and BlackRock.
These ETFs have attracted many institutional traders into the crypto market, bringing in a combined inflow of $2.4 billion every week.
Lee believes this recent ETF activity will help Bitcoin reach new heights.
Lee is optimistic that Bitcoin could surpass its previous all-time high of nearly $70,000.
He stated, “I think it could be as high as $150,000 this year.”
Lee also mentioned supply constraints due to halving, which reduces the rate of new BTC creation, as another factor that could boost Bitcoin’s price.
He also cited the potential easing of monetary policy as a factor that could positively impact Bitcoin.
Lee told CNBC, “Because you’ve got demand improving with the [spot bitcoin exchange-traded fund] ETF, and you have the supply shrinking with the halving, and if monetary policy eases, which we expect, that’s supportive for risk assets and bitcoin’s holding up. I don’t think the drawdown is going to start that soon.”
Long-Term Outlook for Bitcoin
Lee’s recent prediction aligns with his long-term outlook, where he sees Bitcoin reaching $500,000 over five years.
He previously stated that Bitcoin’s quality as “sound money” would drive its price to half a million dollars due to its security and utility as a store of value and risk asset.
On February 20, 2024, Bitcoin, which has a market capitalization of over $1 trillion, reached $53,000 for the first time since the last bull run in 2021.
However, this new all-time high was short-lived, with Bitcoin retracing back to $50,000 on some crypto exchanges, including Binance.
As of February 22, Bitcoin is trading at $51,580, with a 0.49% drop over the last 24 hours, according to CoinMarketCap data.
Analysts’ Views on Bitcoin
Not all analysts share Lee’s optimism for Bitcoin.
Joel Kruger, a market strategist at LMAX Group, has urged short-term traders to be cautious of the risks associated with cryptocurrencies.
He cited potential volatility due to shifting central bank policies and global macro weakness.
Kruger suggested that a downturn in BTC value could present an opportunity for strategic investors to buy in.
An analytics firm, Swissblock, also expressed similar sentiments as Kruger.
The firm anticipates a potential pullback in BTC prices before the crypto asset resumes its uptrend trajectory.
Despite short-term uncertainties, Swissblock maintains a bullish long-term outlook for Bitcoin, highlighting its potential for higher prices in the future.
Swissblock analysts said, “While the prevailing sentiment suggests a potential continuation of the upward trajectory, the current scenario may necessitate a period of consolidation or even a retracement to the $47.5k support level.”
