Fundstrat head of research Tom Lee maintained his $150,000 bitcoin price prediction for this year, citing increasing demand, decreasing supply and supportive monetary policy as key factors driving the bullish forecast.
Fundstrat head of research Tom Lee has doubled down on his bitcoin price prediction of $150,000, saying the cryptocurrency could reach that price level this year. He cited three main reasons driving his bullish price forecast.
Bitcoin Price Prediction $150k from Fundstrat
Describing bitcoin as “sound money,” he emphasized that the cryptocurrency is very safe and has proven to be a good risk asset and a great store of value. Thomas Lee, a managing partner and head of research at Fundstrat Global Advisors, shared his bitcoin price predictions in an interview with CNBC on Wednesday. Fundstrat is an independent financial research boutique providing strategic market insight.
When asked what the price of bitcoin would be for the rest of the year, Lee answered:
I think it could reach $150,000 this year.
Prior to founding Fundstrat, Lee had more than 25 years of experience in equity research. Before founding Fundstrat, he served as JPMorgan's chief equity strategist from 2007 to 2014 and before that as managing director at Salomon Smith Barney, he explains that his bullish predictions stem from several factors
For his long-term BTC price prediction, he reiterated his estimate of $500,000 over five years. Describing bitcoin, he emphasized:
It's sound money, and I think it's proving to be worthwhile... It's a good store of value, a good risk asset, and it's also very safe.
Lee emphasized: "There has not been a single fraudulent entry on the blockchain since the beginning. I don't think any bank can say that's true about their P&L and accounting. You know that 6% of banking transactions are suspicious, 0% on the Bitcoin blockchain."
"Because you have rising demand with ETFs [bitcoin exchange-traded funds] and you have shrinking supply with halvings, and if monetary policy loosens, which we expect, that supports risk assets and bitcoin survives," he detailed. "I don't think the withdrawal will start that soon." Following the launch of a spot bitcoin ETF and an initial price drop in January, bitcoin prices have been gradually rising over the past month. Coinbase CEO Brian Armstrong said last week that every institution is now starting to hold crypto and the asset class will become a standard part of every portfolio.
Do you think the price of bitcoin will reach $150,000 this year due to the factors explained by Fundstrat's Tom Lee? Let us know in the comments section below.
