If regulators give the green light to the first-ever US spot Bitcoin ETF
In my opinion, there's the prospect of an earnings rebound, a potential slowdown by the Fed, and the stabilization of interest rates, all of which could lead to the activation of the cash," remarked Lee.
The world's biggest cryptocurrency by market capitalization might surge to an all-time high in the upcoming year. This projection comes from Tom Lee of Fundstrat.
#01
During a CNBC interview on Wednesday, the strategist explained the reasons behind the possibility of a six-figure increase beyond the previous peak of $69,000.
#02
If the US spot Bitcoin ETF is approved, my belief is that the demand will outstrip the daily supply of Bitcoin," Lee remarked. "The price at which transactions are settled... lies above $150,000, and there's even a possibility of it reaching $180,000.
#03
While the Jacobi Bitcoin ETF, with the ticker symbol BCOIN, became operational in Europe on Tuesday, applications for similar funds by asset management giants like BlackRock and Fidelity are still awaiting approval from US regulators.
#04
Lee asserted that the potential for growth persists even in the scenario where the spot ETF isn't granted approval.
#05
This is due to the upcoming Bitcoin halving event next year, which will result in a 50% reduction in the number of bitcoins miners receive as rewards.
#06
In the upcoming halving event, the rewards for miners will decrease from 6.25 bitcoin to 3.125 bitcoin per block, thus leading to a scarcity impact as outlined in Satoshi Nakamoto's original whitepaper.
#07
In the last three halving events, there has been a consistent pattern of aligning with new all-time highs within a span of 12 months.
#08
While the halving alone has the potential to significantly boost Bitcoin's price, Lee pointed out that a six-figure surge wouldn't occur without the regulatory green light for the US spot ETF.
#09
On a different note, he highlighted that the easing macroeconomic conditions and Federal Reserve policies establish a positive outlook for cryptocurrencies across various fronts.
#10
Since cryptocurrencies are intertwined with monetary policies, if inflation shows signs of slowing down, we can consider the likelihood of improved forward financial conditions and earlier central bank easing," explained Lee.
#11
This scenario fosters a positive stance for cryptocurrencies or alternative assets, indicating a bullish trend.
#12
Regarding conventional assets, the head of Fundstrat reiterated his prediction of the S&P 500 reaching a new record peak by the year's conclusion.
#13
Even if there's a 5%-8% decline in equities during August, he mentioned that there remains $5.5 trillion in cash on standby, ready to enter the market.