The oft-bullish Tom Lee of Fundstrat Global Advisors has shared a prediction for the price of Bitcoin. Lee believes the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States could steer the classic crypto’s price to over $150,000.
Bitcoin At $180,000
Fundstrat co-founder Tom Lee is once again singing Bitcoin’s tune and this time proclaiming that the OG cryptocurrency is likely to hit over $150,000 by the end of 2024.
Speaking during an interview with CNBC’s Squawk Box, Lee suggested that a string of Bitcoin spot ETF approvals would shift Bitcoin’s supply-demand dynamics towards substantial price appreciation. He believes the SEC’s nod on these sought-after investment vehicles has no other choice but to catapult Bitcoin to $150,000, even reaching the $180,000 mark.
“If the spot Bitcoin [ETF] gets approved, I think the demand will be greater than the daily supply of bitcoin,” he said, explaining: “So the clearing price — this is done by our crypto digital strategist — is over $150,000. It could even be like $180,000.”
Traditional finance bigwigs Fidelity, Invesco, Wisdom Tree, ARK Invest, and Valkyrie followed the world’s biggest asset manager BlackRock in filing for a physically-backed Bitcoin ETF with the SEC in June. Just last week, the commission pumped the brakes on Cathie Wood’s ARK 21Shares application.
According to Lee, Bitcoin ETFs have gained traction globally, but an endorsement by U.S. regulators would undoubtedly be a huge milestone for the cryptocurrency sector.
Why Bitcoin Will Still Surge Without Spot ETF
Lee further pointed out the connection between crypto assets and the wider economic backdrop. He affirmed that the stabilization of interest rates could usher in more relaxed financial conditions. That could bring upside volatility in risky assets, including cryptocurrencies.
But even if a spot Bitcoin ETF does not get greenlighted, Lee still thinks that the flagship crypto still has upside potential due to the upcoming halving event.
“You will have a drop in supply again, so the clearing price has to increase. But it won’t be six figures.”
Roughly every four years, the Bitcoin rewards awarded to miners for successfully mining a block are slashed by 50% as a way of regulating the blockchain’s supply economics. The next halving, scheduled for Apr. 26, 2024, will reduce the reward to 3.125 BTC per block from the current 6.25 BTC.
In fact, other pundits have predicted that a $100K BTC price tag could come much sooner than many expect, with Blockstream boss Adam Back recently betting that the top crypto will achieve the lofty new high the month before the halving.