Veteran crypto market analyst and commentator, Tom Lee, has predicted that following previous trends in the Bitcoin cycle, the crypto asset is set to hit an all-time high of $150k before the end of 2024.
According to CoinTelegraph, an interview on CNBC earlier in May saw Lee, Managing Partner and head of research at Fundstrat Global Advisors, coming out with his latest bullish BTC price prediction.
Bitcoin, which is currently trading at $69,000 at the moment, has received a lot of bullish price predictions this week from analysts but Mr Lee stands out by being one of the few long-term observers.
Lee revealed that his company Fundstrat sees a base case six-figure BTC price in 2024.
“Bitcoin’s still, we think, early in an upcycle, so the idea that it could get to $150,000 this year is still within our base case,” Lee said.
Such a price would be double the current all-time highs, which hit in March before retreating to $56,000 at the start of May.
Lee explained that his prediction is hinged on macroeconomic changes in the United States.
The Federal Reserve’s language on interest rate cuts — a key issue watched by risk-asset traders — is “more dovish than where the market is.”
“I think that’s the process of why markets are recovering,” he suggested.
Lee is quite popular in the crypto industry for his Bitcoin price prediction antics despite not hitting the target sometimes.
He explained to his followers on X that his decision to be a long-term Bitcoin trader has paid off, saying being intellectually stubborn comes at a cost.
Bitcoin is currently trading at around $69,000 as at the time of writing on May 23, according to CoinTelegraph Crypto Price Checker.
Risk assets face uncertain times in the United States as pundits predict the outcome of the Federal Reserves’ September meeting.
Latest estimates from CME Group’s FedSee Tool show that markets only believe a cut is the most likely option at the Fed’s September meeting — not earlier.
The Federal Open Market Committee (FOMC) held its meeting in May where it additionally stressed the idea that no policy direction was off the table.
The plan to maintain the current restrictive policy in the country should inflation not slow down its effect on the labour market was also brought up and discussed.
“Various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate,” the committee said.
The committee agreed. The body language and actions of the Federal Reserve is very important to risk asset traders which includes crypto traders and their actions can affect the price of crypto assets.
What to Know
- Bitcoin Exchange traded funds witnessed a cash inflow of over $309 million as news of a potential Ethereum Exchange traded funds saturate the crypto market space. Blackrock’s IBIT gained the most cash inflows of all the available Bitcoin ETFs.
- Analyst also believe the potential spot Ethereum ETF could drive Ethereum price up to $10,000 given previous antecedents.
- Tom Lee’s prediction that Bitcoin could hit $150,000 before the end of 2024 is hinged on the macroeconomic changes in the United States with a clear acknowledgement of the actions of the federal reserve.