Tom Lee, managing partner at Fundstrat Global Advisers, believes #bitcoin (BTC) will reach six digits before the 2024 halving.
According to Lee in a research note, the introduction of a spot Bitcoin exchange-traded fund (ETF) might cause #BTC to rise to between $140,000 and $180,000 by the end of the year in April.
This would indicate an increase of between 380% and 516% above current levels.
The Fundstrat managing partner claims his projection is based on Fundstrat's director of crypto strategy Sean Farrell's assumption that the introduction of a spot Bitcoin ETF will raise daily demand for Bitcoin fivefold.
"The current bitcoin market is balanced, with $25 million in daily block rewards and $25 million in daily demand."
INCREASING ETF DEMAND: Sean [Farrell] estimates $25 billion in demand is conceivable in the first year. This equates to $100 million in daily demand.
This would boost daily demand to $125 million, whereas daily supply is just $25 million. The estimated equilibrium price would need to increase in order for daily supply to equal daily demand. Before the April 2024 halvening, an equilibrium study indicates a clearing price of $140,000 to $180,000.
In general, the concept of a higher equilibrium price is consistent. Sean Farrell believes that the flow multiplier for Bitcoin is 4X-5X."
Lee believes the chances of a spot Bitcoin #ETF being authorized in the US after many denials are slim.
"A Bitcoin ETF may soon be authorized." Sean Farrell believes the 'BlackRock effect' makes this significantly more plausible today."
Last month, BlackRock, the world's biggest financial corporation by assets under management, submitted a spot Bitcoin ETF application.
