Bitcoin, the leading cryptocurrency by market value, has the potential to soar to $150,000 this year, according to FundStrat Global Advisors’ head of research Tom Lee.
Lee, a well-known bitcoin bull, cited three main factors that could drive the price higher: the launch of new bitcoin exchange-traded funds (ETFs), the upcoming halving event that will reduce the supply of new bitcoins, and the expected easing of monetary policy by the Federal Reserve.
In an interview with CNBC on Wednesday, Lee said that the demand for bitcoin is improving with the introduction of new ETFs, which make it easier for investors to access the crypto market. He pointed out that the first bitcoin futures ETF, which debuted on the New York Stock Exchange last week, has already attracted more than $1 billion in assets under management.
Lee also said that the supply of bitcoin is shrinking with the halving, which is a programmed event that occurs every four years and cuts the reward for mining new bitcoins by half. The next halving is expected to happen in May, and Lee said it will create a supply shock that will boost the value of each bitcoin.
Additionally, Lee said that if the Fed cuts interest rates, which he expects, it will be supportive for risk assets like bitcoin. He argued that lower rates will weaken the US dollar and increase the appeal of alternative currencies like bitcoin.
Source: Coingecko
Lee’s bullish prediction came as bitcoin’s rally seemed to lose some momentum after reaching a 26-month high of $53,000 on Monday. The cryptocurrency was trading at around $51,769 on Thursday, down 1% over the past 24 hours, according to Coingecko data. However, Lee said he is not worried about a possible correction and that bitcoin is still holding up well.
“I do not think a drawdown is going to start that soon,” he said. “I think bitcoin is still in a very strong uptrend.”
Source: https://azcoinnews.com/fundstrats-tom-lee-predicts-bitcoin-could-hit-150000-this-year.html
