Tom Lee Prediction: Bitcoin Will Reach $150,000 Before the End of 2024
Date: 2024-05-09 Author: Henry Casey Categories: BUSINESS
Fundstrat co-founder Tom Lee confirmed his prediction that the price of Bitcoin will reach $150,000 by the end of this year while speaking on CNBC.
Lee's statements
Lee first presented this forecast in January, expressing his belief that Bitcoin could even reach $500,000 within five years. In February, he repeated his forecast, pointing to a reduction in the supply of Bitcoin after the halving and the expectation of an easing of monetary policy by the Federal Reserve.
Reasons and arguments
This time, Lee based his forecast on the supposed “buying in May” following the April sell-off in cryptocurrencies, which is contrary to the well-known “sell in May and go away” investment strategy. He also noted that the US economy is no longer so overheated, which gives the Fed the opportunity to lower the key rate, which, in his opinion, will benefit Bitcoin.
Based on the arguments described above, Fundstrat confirms its base case scenario, which sees Bitcoin reaching $150,000 by the end of 2024.
Lee's analysis
Lee also suggests that the Fed will lower rates in the interests of regional banks, which will have a positive effect on Bitcoin. He raises concerns about the balance sheets of regional banks, which are under pressure due to the high cost of money.
The ratio of positions in call and put options on Bitcoin, according to the analysis of QCP Capital experts, indicates that traders expect a spot price in the range of $70,000 to $100,000 by the end of 2024.
