Tom Lee, head of research at Fundstrat, has reiterated his forecast for the price of bitcoin to reach $15,000. He believes that the cryptocurrency may hit that mark this year. He gave three main justifications for his optimistic price prediction. Referring to bitcoin as “sound money,” he highlighted its extreme security, potential as a risk asset, and outstanding value preservation.
Fundstrat Projects a $150K Bitcoin Price
In an interview with CNBC on Wednesday, Thomas Lee, a managing partner and head of research at Fundstrat Global Advisors, revealed his estimate for the price of bitcoin. Strategic market insights are offered by independent financial research firm Fundstrat. Lee has worked in equities research for more than 25 years. Prior to co-founding Fundstrat, he was a managing director at Salomon Smith Barney and from 2007 to 2014, he was JPMorgan’s chief equities strategist.
Regarding the price of bitcoin for the rest of the year, Lee gave the following response when asked:
This year, I believe it might reach $150,000.
He clarified that a number of reasons contribute to his optimistic forecast. “Because supply is decreasing with the halving and demand is improving with the [spot bitcoin exchange-traded fund] ETF, and if monetary policy eases, which we expect, that’s supportive for risk assets and bitcoin’s holding up,” he explained. “I don’t believe the drawdown will begin that quickly.”
He maintained his five-year prognosis of $500,000 for the long-term price of Bitcoin. As he explained bitcoin, he underlined:
It’s sound money, and it seems to be working out well. The store value has been excellent. It has proven a useful risk asset. It’s really safe as well.
“Since the blockchain’s creation, there hasn’t been a single fraudulent entry,” claimed Lee. About their P&L and accounting, I doubt any bank can make that claim. You are aware that just 6% of bank transactions on the Bitcoin blockchain are questionable.
The price of bitcoin has been steadily rising over the past month, even after the introduction of spot bitcoin ETFs and the first price decline in January. According to comments made by Coinbase CEO Brian Armstrong last week, all institutions are now beginning to own cryptocurrency, and it will eventually be a common component of every portfolio. Bitcoin is the “most significant monetary advance since the creation of coinage,” according to privacy champion Edward Snowden. According to Michael Saylor, executive chairman of Microstrategy, the biggest cryptocurrency has emerged as the “most popular investment asset” globally. Anthony Scaramucci, the founder of Skybridge, stated that there is still time to purchase bitcoin and predicted a “face-ripping rally incoming.” On the other hand, some people have doubts. Peter Schiff, a gold bug, issued a warning about a bitcoin pump and dump, alerting a massacre.
Do you believe that the reasons outlined by Tom Lee of Fundstrat will cause the price of bitcoin to hit $150,000 this year? Tell us in the space provided for comments below.