Fundstrat’s head of research, Thomas “Tom” Lee, has issued an astounding price prediction for the world’s largest cryptocurrency by market capitalization, Bitcoin (BTC).
During an appearance on the latest episode of CNBC’s Squawk Box, Lee forecasted that the price of Bitcoin would triple this year to around $150,000.
.@fundstrat’s Tom Lee expects stocks to decline in the first half, but hasn't seen signs of a near-term top yet. He joins to discuss: pic.twitter.com/bBsyAN8foC
— Squawk Box (@SquawkCNBC) February 21, 2024
3 Factors That May Propel Bitcoin Price Surge to $150K
Interestingly, the top analyst highlighted three factors that could push Bitcoin to the projected $150,000 price target.
Bitcoin ETFs to Boost BTC Demand
First, he speculated that demand for Bitcoin would continue to spike following the launch of multiple Bitcoin exchange-traded funds (ETFs) in the U.S.
Since the SEC approved the launch of 11 Bitcoin spot ETFs on January 11, several market experts, including former CEO of BitMEX Arthur Hayes, believe these funds could attract billions of investments from TradFi. So far, Bitcoin ETFs have seen over $5 billion in net inflow since their debut in January.
Per Lee, the massive inflow in Bitcoin ETFs would contribute significantly to bolstering BTC’s demand.
Upcoming Halving
Additionally, Lee highlighted the upcoming Bitcoin Halving event as the second factor that could drive the BTC price to $150,000 this year.
For context, the next Bitcoin Halving is slated to occur in April 2024. After the event, Bitcoin miners’ rewards will be slashed to 3.125 BTC from the current 6.25 BTC. The rationale behind the quadrennial event is to counteract excessive inflation within the Bitcoin ecosystem.
Potential Reduction of Interest Rates
The third reason that could propel Bitcoin to hit the $150,000 target this year, according to Lee, is the potential reduction of interest rates by the Federal Reserve.
Recall that in December, Fed’s policymakers predicted that they expect to cut interest rates by the end of 2024. According to the policymakers, a projection of three quarter-point rate cuts could happen towards the end of the year.
Lee believes that cutting interest rates would benefit Bitcoin and other risky assets.
Dollars Used in Illicit Trades Than BTC
Besides predicting a spike in BTC price, Lee also debunked claims by crypto critics who suggest that Bitcoin is mainly used for illicit activities.
Some famous Bitcoin critics who support this notion include Senator Elizabeth Warren and JPMorgan CEO Jamie Dimon. While debunking these claims, Lee pointed out that malefactors use the U.S. dollar more in illicit transactions compared to BTC.
In the meantime, Bitcoin was trading at $51,233, down 0.1% over the past 24 hours. With Lee expecting Bitcoin to hit a target of $150,000 this year, the top asset would need to surge 192.78% from its current price.
Rich Dad Poor Dad Author Sees Bitcoin Hitting $100K in June
Meanwhile, Lee is the latest financial expert who expects Bitcoin to hit six figures this year. As reported earlier, top financial expert Robert Kiyosaki, the author of the personal financial literacy guide “Rich Dad Poor Dad,” also shared a similar sentiment.
Notably, Kiyosaki predicted that Bitcoin price would spike to $100,000 in June, two months after the halving event.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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