Tom Lee, the esteemed Head of Research at Fundstrat, has recently voiced his confidence in Bitcoin, predicting that the cryptocurrency will comfortably surpass the $100,000 mark by the close of 2024. Lee’s prediction was shared during his appearance on CNBC, where he painted an optimistic future for Bitcoin, the world’s leading cryptocurrency.
Lee’s forecast has not gone unnoticed, drawing attention from top-tier crypto executives, noticeable among them is MicroStrategy Executive Chairman, Michael Saylor. At the time of Lee’s bullish prediction, Bitcoin was trading at approximately $90,500. For Bitcoin to reach Lee’s forecast of $100,000, the cryptocurrency would need to surge a further 10.49%.
Earlier this year, in February, Lee had set his end-of-year target for Bitcoin at a staggering $150,000. He cited factors such as Bitcoin ETFs, halving, and interest rate reduction as the driving forces behind this prediction. However, he has since revised this figure downwards by 33.33%, setting the new target at $100,000.
Lee was also quick to highlight the alignment of Bitcoin’s current market conditions with the expected performance post-halving. Historically, Bitcoin has been known to experience significant growth following the Bitcoin Halving event. This event reduces miners’ rewards and the Bitcoin inflation rate, typically resulting in a price increase. Bitcoin’s latest surge to the $90,000 mark comes seven months after the most recent halving event.
Lee also predicts a strong performance for Bitcoin over the next 12 months. He underscored Bitcoin’s potential, particularly under the Donald Trump-led administration. In his view, Bitcoin will be a significant focus for the next administration’s economic considerations, potentially being utilized as a reserve asset. Lee believes that such a move could address some inherent issues within the current financial system.
Investors are similarly optimistic, expecting cryptocurrencies, including Bitcoin, to thrive under the next administration. This is, in part, due to Trump’s promising statements regarding the sector. Trump has pledged that his administration would ensure that the U.S. has a national Bitcoin stockpile, thereby allowing the country to hold Bitcoin as a reserve asset. This aligns with the proposed Bitcoin Act bill by Senator Cynthia Lummis (R-WY), which suggests that America acquires 5% of Bitcoin’s supply over the next five years. After acquisition, the bill recommends that the U.S. government hold onto the asset for at least 20 years.
This news has spurred investor confidence in Bitcoin, with several companies issuing favorable forecasts for the asset. Just yesterday, Bernstein projected that Bitcoin could surge to $200,000 by next year. This prediction is potentially driven by Donald Trump’s pro-crypto promises, the proposed U.S. national Bitcoin reserve, and growing institutional demand.
