On Tuesday (July 2), Fundstrat research director Tom Lee said that Bitcoin still has new room for growth in the future, and by the end of this year, investors will see a sharp rise in the price of Bitcoin to $150,000.
Lee, one of the most bullish bitcoin forecasters in recent years, predicts that bitcoin is still on track to reach a value of $150,000, which would mean a 138% increase in its price from Monday.
That may come as a surprise to token holders, who have seen Bitcoin fall 7% over the past month shortly after hitting an all-time high in early 2024. However, Lee said the sell-off was partly driven by concerns about the payout of Mount Gox, a cryptocurrency exchange that locked up about $9 billion worth of cryptocurrency when it declared bankruptcy a decade ago.
The trustee overseeing the exchange’s bankruptcy announced that repayments would be issued to approximately 20,000 users starting this month. Anticipation of the event has weighed on cryptocurrency prices recently, according to K33 Research. There are concerns that the distributions will lead to significant selling pressure on Bitcoin as investors cash out on huge gains since their accounts were locked out a decade ago.
But Lee said the impact of the repayments will gradually fade, and predicted that Bitcoin will rise sharply again for the rest of the year.
“Bitcoin is probably starting to feel the effects of the Mount Gox distribution in July. This has been a huge overhang for many years, but if I’m investing in crypto, knowing that one of the biggest overhangs is going to be gone in July, I think it’s a reason to expect a pretty strong rally in the second half of the year,” he said.
Other Bitcoin forecasters remain optimistic about Bitcoin this year, especially as the Federal Reserve appears ready to cut interest rates. Bitcoin prices rebounded after a brutal 2022, recovering all lost ground and setting a new all-time high of around $73,000 this year.
Galaxy Digital CEO Mike Novogratz is optimistic about crypto legislation, regardless of whether Biden or Trump wins the White House next year.
Crypto legislation is inevitable: Mike Novogratz
Despite the apparent differences between the two leaders on crypto policy, the billionaire insisted that crypto should logically be a bipartisan concern and that he is moving in that direction.
“No matter who wins the next election, we’re going to get positive crypto legislation — I know that,” Novogratz told CNBC on Tuesday, noting that he is “not a single-issue voter.”
Between hostile legislative proposals and a series of enforcement actions by the Democratic-controlled SEC, the Biden administration and progressive lawmakers have been sharply criticized by Novogratz and other crypto industry leaders for stifling the growth of blockchain businesses across the country.
In contrast, many industry leaders support former President Donald Trump's 2024 presidential run, and Trump has recently turned into a Bitcoin advocate.
Following last week’s presidential debate, cryptocurrency betting markets are now widely predicting that Trump will win the election. The likelihood of Vice President Kamala Harris replacing Biden as the Democratic nominee is also rising.
However, even if Trump doesn’t win, Novogratz said attitudes toward cryptocurrencies are changing within the Democratic Party.
“With the exception of Elizabeth Warren and a small minority, most Democrats are very supportive of innovation and crypto,” he said.
The House of Representatives passed several pieces of pro-cryptocurrency legislation in May, including the FIT21 Act, a comprehensive bill that seeks to provide a clear regulatory framework for cryptocurrency companies to operate in the country. The bill received overwhelming bipartisan support, with 208 Republicans and 71 Democrats voting in favor.
Where is the bull market for Bitcoin?
The CEO also commented on Bitcoin’s second-quarter price stagnation, acknowledging that its first-quarter surge will take some time to “digest.” Nonetheless, massive government spending under both Trump and Biden will continue to push up asset prices.
“These two presidents are the two worst presidents in the history of our country in terms of increasing the debt,” Novogratz said. “Until the government actually stops spending like a drunken sailor… I think it makes perfect sense to have Bitcoin as a core asset.”
Galaxy Digital (GLXY) stock has gained 14.95% over the past five trading sessions.
