Tom Lee predicts Bitcoin’s target to reach $150,000, signaling a positive outlook for the cryptocurrency.
Tom Lee, the founder and head of research at FundStrat Global Advisors, has once again expressed a highly optimistic forecast for Bitcoin (BTC). In a recent interview with CNBC, Lee projected a remarkable potential surge for Bitcoin, suggesting that it could reach an astonishing $150,000 within the next 12 to 18 months.
Lee’s prediction implies a roughly 117% increase from its current value, which is supported by Bitcoin’s role as a hedge against financial instability. He highlighted three key factors that contribute to his positive outlook. Firstly, the increasing demand for a spot exchange-traded fund (ETF) is a significant driver. Lee believes that the inflow of investments into the spot Bitcoin ETF, combined with the upcoming Bitcoin halving event, creates a favorable environment for Bitcoin’s value to soar. The halving event will reduce the supply of the cryptocurrency.
Lee specifically mentioned the growing inflows into spot Bitcoin ETFs, such as BlackRock’s, which recently experienced an $800 million boost. He explained that the introduction of new ETFs, coupled with the supply reduction caused by halving and the expected easing of monetary policy, will likely support risk assets. He also noted that these ETFs now hold over $28 billion in assets, surpassing the assets in the Grayscale Bitcoin Trust ETF (GBTC) for the first time, indicating strong institutional interest in Bitcoin.
Lee further elaborated on the supply-demand imbalance, particularly in anticipation of the Bitcoin halving event, which is expected to further exacerbate this discrepancy and favor price surges. On the regulatory front, Lee expressed optimism, suggesting that Bitcoin may have already overcome the most challenging phase of regulatory hurdles over the past 18 months. He believes that considering the intensity of regulatory actions in the crypto space during that period, it is unlikely that regulatory challenges for Bitcoin will intensify further.
This forecast comes at a time when Bitcoin has experienced a slight cooling off after reaching a new 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 coin’s price was up 1.5% over 24 hours, trading at $69,308, according to data from CoinGecko. However, its trading volume during that period experienced nearly a 39% decline, ending the day with a value of $31,576,168,688.
Lee’s insights into Bitcoin’s potential trajectory provide a bright outlook for bullish investors and add an intriguing narrative to the ever-evolving world of cryptocurrency.
