Thomas Lee, the managing partner at Fundstrat Global Advisors, has made a bold prediction for Bitcoin, stating that it will skyrocket to half a million dollars in the next five years.
In an interview with CNBC, Tom Lee noted that Bitcoin can easily reach a price tag between $100,000 and $150,000 in the next 12 months, while also adding that the digital asset has the potential to reach higher prices as well.
“I think in the next 12 months Bitcoin will reach over $100,000…maybe $150,000,” Lee said.
Tom Lee Predictions: Bitcoin to $500K?
Lee said in the interview that there are a combination of factors that could potentially aid Bitcoin’s growth to a $500,000 price tag. He said that the finite supply of BTC, along with the approval of a Spot Bitcoin Exchange-Traded Fund (ETF) in the United States, will benefit the digital asset’s adoption among institutions and retail investors.
On Wednesday afternoon, the United States approved ETF applications of dozens of asset managers like BlackRock, Grayscale, Franklin Templeton, and others. All pending ETF applications were approved at the same time to avoid the first mover advantage.
The Fundstrat executive said that the approval of a Spot BTC ETF will open doors for new investors in the digital asset ecosystem. He noted that $500,000 is an achievable price for Bitcoin, noting:
“There’s potentially a huge increase in demand with a Spot Bitcoin approval so I think in five years something around half a million is definitely achievable.”
When asked if investors would be interested in purchasing bitcoin through digital asset exchanges in the future after the approval of a Spot BTC ETF, Lee said that many young investors would follow the “my keys, my coin” philosophy and buy BTC via exchanges.
However, Lee also noted that there is a vast majority of investors that would rather invest in Bitcoin via 401(k)s, liquid assets, and traditional markets. He cited that almost 76% of the wealth in the US belongs to people aged over 50, and so the majority of money will come in via traditional markets in the digital asset sector.
Bullish Predictions
In another interview last year, Lee anticipated reduction in Bitcoin’s supply to approximately 12 million per day following the upcoming Bitcoin halving event. He also speculated that the potential daily demand for Bitcoin through ETFs might reach as high as $100 million.
Tom Lee’s bullish outlook aligns with predictions from other industry leaders. Adam Back, the founder of Blockstream, recently predicted that Bitcoin will surge to $100,000 before the 2024 halving. He also envisioned a potential leap to $750,000 to $1 million per coin under an optimistic scenario. Back believes that BTC will eventually surpass physical gold, possibly within the coming halving cycle.
Max Keiser, advisor to El Salvador President Nayib Bukele, also made a similar prediction, suggesting a “god candle” could propel Bitcoin’s price by $100,000.
