The post Fundstrat Analyst Tom Lee Foresees Bitcoin Surging Past $100,000 This Year appeared first on Coinpedia Fintech News
Tom Lee, head of research at Fund Strat Global Advisors and Chief Investment Officer at Fund Strat Capital, appeared on CNBC for his first post-election discussion. He reflects on the election outcome, acknowledging that while not many predicted Trump’s victory, his team placed significant weight on betting markets that indicated a potential win.
Lee notes the substantial market rally following the election and believes that this rally reflects a significant amount of capital that was previously withdrawn from the market due to election-related uncertainties. He anticipates continued benefits for assets like Bitcoin, small caps, and regional banks due to policy changes and investor sentiment.
Bitcoin To Surge Above $100,000
Lee suggests that while tax cuts and spending changes may not effectively address the deficit, Bitcoin could serve as a hedge against it. He mentions that as Bitcoin’s price rises, it could help offset liabilities associated with the deficit.
He has predicted that Bitcoin may surge above the $100,000 level this year, with further increases expected in the following years. He is very confident and is convinced that the six figures is not very far from reach for the flagship cryptocurrency this year.
The famous permabull has emhasized that the regulatory overhang which is now subsiding, as one of the key bullish catalysts.
Lee Supports Fed’s Rate Cut Move
Amidst the positive sentiments in the broader market, the Fed recently implemented another 25-basis-point rate cut. He believes that the Fed’s current approach is appropriate, as the fight against inflation is largely over and real interest rates remain too high. Lee supports the Fed’s move towards a neutral rate of around 3 percent, which he believes will be beneficial for markets and business investment.
Looking ahead to the S&P 500, Lee predicts a 5 to 10 percent increase by the end of the year, attributing this to factors like the typical post-election rallies, a dovish Federal Reserve, and favorable seasonal trends.
