Bitcoin Analyst Predicts Price to Reach $150,000 by Year-End
Tom Lee, a prominent analyst at Fundstrat, has made a bold prediction that Bitcoin’s price could soar to $150,000 by the end of this year, more than tripling its current value. Lee’s bullish forecast is backed by two key factors: the increasing demand for Bitcoin exchange-traded funds (ETFs) and the imminent Bitcoin halving, which will result in a decrease in supply.
In an interview, Lee stated, “You’ve got demand improving with the ETF, you’ve got supply shrinking with the halving, and if monetary policy eases – which we expect – that’s supportive of risk assets.”
Bitcoin has historically been closely correlated with “risk assets” such as technology stocks, with its value rising as interest rates decline and falling as interest rates rise. Traders speculate that the Federal Reserve may start cutting interest rates by June, which would further boost Bitcoin’s performance.
The upcoming Bitcoin halving, scheduled to take place this year, will reduce the daily issuance of Bitcoin by 450 BTC, equivalent to $23 million at the current price. This event is expected to have a positive impact on Bitcoin’s value.
Furthermore, the recent approval of Bitcoin spot ETFs has been seen as a significant catalyst for the next bull run. These financial products, launched by well-known institutions, have attracted substantial investments, highlighting the strong demand in the market.
The influx of funds into Bitcoin has propelled its price above $50,000 for the first time in two years. Lee stated, “Bitcoin’s holding up, and that’s another reason I don’t think a drawdown is gonna start that soon. It is sound money, it’s proving to be useful. It’s been a great store of value, it’s been a good risk asset. It’s also incredibly secure…there hasn’t been a single fraudulent entry on the blockchain since inception.”
Lee had previously predicted that Bitcoin could reach as high as $180,000 on the day of the halving, based on an estimated daily demand for Bitcoin ETFs of $125 million. However, the latest data indicates that the ETFs have been averaging $185 million in daily demand, further supporting Lee’s positive outlook for Bitcoin’s price.
With the expected increase in demand from ETFs and the reduction in supply due to the halving, Bitcoin appears to be on track for a potentially massive price surge by the end of the year. Investors and enthusiasts alike are closely monitoring the market for further developments.
Disclaimer: The information provided in this article does not constitute financial advice. Always do your own research before making any investment decisions.
Analyst comment
Positive news. The market is expected to experience a significant price surge by the end of the year, with Bitcoin predicted to reach $150,000. Factors such as increasing demand for Bitcoin ETFs and the upcoming halving are expected to drive this growth. The approval of Bitcoin spot ETFs and potential interest rate cuts by the Federal Reserve further support this positive outlook. Investors and enthusiasts are closely monitoring the market for further developments.
